So Netflix has come out with its instant queue service on both the xbox 360 and TiVo platforms, and the verdict is mixed. On the technical side, if HD versions are available and supported by your gear, that's what you'll get, without the hassle of a $300 Blu-Ray player. The performance is not really an issue--a brief adjustment will occur if your internet connection slows down in the middle of your video--but the content is so-so. There are very few movies worth seeing available for streaming, and by very few I mean Ghostbusters.
On the other hand, they have a grip of TV shows, which is pretty sweet since you can watch an entire season without dealing with disks at all. Also, they have the current season's episodes, so in case you forgot to watch it and forgot to set your DVR, there is now a last failsafe to ensure you will not have to wait for the DVD.
Netflix packages start at $8.99/mo, and you still get DVDs delivered in addition to the instant service.
UPDATE: sony sucks