It was in 2004 that Netflix CEO Reed Hastings first talked about its film download service, and back in July 2005 when beta trials were first leaked and the system was taken a look at, but it is only now that a truncated, half hearted movie on demand system is finally emerging from the US online DVD rental leader. And in the end the company has fumbled the ball entirely and delivered it purely as a free service, in order to drive down churn in its online DVD rentals, rather than give it a serious shot at changing its business model. And with Netflix last revealed quarter showing just a 4.9% margin, with net income of $12.7 million on $255…