You need one of these 3rd party apps:
RealHDMI: (Tried & true....<$4 in the Market)
https://market.android.com/details?id=com.gmanapps.realhdmi&feature=related_apps
Xternal Display: (A little bit more glitchy but FREE!)
https://market.android.com/details?id=com.googamaphone.xternaldisplay&feature=search_result
Xternal Display totally works for me, but YMMV. The only issue I have is it doesn't quite scale up the image to take up the entire screen on my TV, but when I am traveling & want to watch a Netflix movie on my hotel TV, who cares.
I did not have to get any extra app to be able to watch netflix on my tv. All I needed was the hdmi cord I got from Radio Shack.