"From the Netflix Web site, simply add movies and TV episodes to your individual instant Queues. Those choices will be automatically displayed on the TV screen via Xbox 360 and available to watch instantly. Once selected, movies will begin playing in 30 seconds or less. In addition to instantly streaming movies to the TV, Gold members can fast-forward, pause, and rewind—all using either the Xbox 360 Controller or Media Remote. In all, the user interface creates a highly personalized experience that puts viewers in control."
They are talking about a future Dashboard upgrade to XBox Live this fall.
11:24: Netflix partnership announced! The Netflix library available on Xbox at no additional cost. Plus, you'll be able to "share" movies with your friends and watch at the same time.
There is also a deal with NBC/Universal for TV and movie content on XBox.
This is actually a bad deal, unless you already have and use xbox live. Do you really want to pay $5 a month just to use your 360 to watch movies that you are already paying to see? That's $60 a year just to pay Microsoft for letting you view the Netflix content you've already purchased. And as soon as you stop paying that monthly fee, no more IW. Much better to just buy the Roku box for a hundred bucks. This would be a good thing if you didn't have to buy the LIVE account.
The Roku box is a good option, simple and cheap, but there are a whole lot of people who already have Xbox LIVE.
Xbox LIVE includes a lot more functionality than the Roku box, so if you want to watch newer movies sourced directly from Xbox LIVE, or use the linked friend features it may be worth $5/month. I pay a lot more than this for my DirecTV/TiVo service. I hear it also plays games :-)
Like I said if you already have xbox live it's good. A lot of people do have live. Just as many or more, like me, have a 360 but not live. This would have been a better deal if 360 owners could have accessed Netflix without having to have a live account.
This is great news for the millions people in the Xbox Live community. Sometimes I do not want to wait for the disk to come in the mail. I'm sure that i shall love the "instant gratification" gained from watching a movie in my Queue on my television home theater. Although, I never could get into watching movies on my computer...