Mhvr3 (one of the WVU crazies) is tweeting something that actually makes sense, seems plausible, and doesn't seem like something someone would just make up.
He's saying the Big12, ESPN, Fox, and Netflix are working on a $500MM, 10 year deal that would include allowing Netflix to rebroadcast some games on some level. It would also include giving Nexflix access to historical games that the Big12 owns the rights to. In the deal the Big12 would get 30%, or $15MM per year/$1.5MM per school per year.
The Shag had some good elaborations on this, thinking the lack of a conference network allows the Big12 to do this in a manner other conferences can't since their networks have first rights at rebroadcasts. Netflix has stated in the past they want in the sports business and this is a good first step that could lead to more lucrative deals down the road, liking airing live games on netflixs as a de-facto conference network or pay-per-view setup.