Yes.  The movies available for streaming are very limited and the video quality is terrible.  Hopefully both these issues will be addressed before the launch of the service.

I believe the potential is great.  I have all three game systems at home.  I like the wii online gameing because it's free, as well as the PS3, but I'm not ready to pay for the adapter and subscription fee that Xbox requires for there online gaming experiance.  I am sure it is worth most of the hype but it will take some time to get me there.

I use Blockbuster's unlimited pass.  I get two movies in the mail wich then I take to the store to get two Blue Ray's at no additional charge.  Then I also get a free game rental each month.  This allows me to get all of the latest movies and tv showes on DVD and check out the latest games on all three platforms before I buy.

Now the first to provide unlimited game rentals, movies (dvd & blue ray), and tv shows both streaming and on disc will be the first to get all of my business.  If Netflix is working with Microsoft then Blockbuster needs to team up with Sony.  

I think a deal between Sony and Blockbuster should be on the table.  This would merry the best of three worlds.  A store front, an online service, and unlimited access to the latest in gaming, movies, and TV.  All for one great price...........  Eat your heart out COX......

Could you imagine the possibility if one of these great platforms teamed up with EA sports and ESPN.  WOW!!!!!!  Am I the only one thinking of this stuff.  I tell you if a deal like this happens I will know it was because you read this and said....  "that's a great idea"  We need to contact this Dustin guy and cut him in on the deal... :)  And I would say "wow... gee...  Thanks....  This is AWESOME!!!!"

Am am telling you, Sony & Blockbuster, EA Sprots & ESPN....  Available online and in stores NOW......

i like netflix service, i even used it when i was stationbed in korea (it just took a little longer to get there.)

Peter what "adapter" is required to get Xbox Live?

(Answer: A network cable.)

The headset is optional unless you need to talk to someone.

I want on-demand access to all media ever made, for $199/mo...  Xbox live for videos isn't to bad (5 - 10 min download time, 5mins or so more for HD) but the selection is still pretty limited.  Comcast on demand is good, but annoying: prices for HD movies went up, encoding will pixelate from time to time, and now fwd/back jump-to ability...  Napster subscription is great, and annoying: home entertainment center w/o media center or in the car, fine on the phone/PDA.  All in all it is incredibly frustrating that most of the technology is there but the pieces don't fall together.  If itunes had a subscription service, that about as good as it can get.  I'm sure that the marketing and accounting people can come up with one monthly fee that would make it viable (and have content producers/studios/etc join in).

Yes, the movies may be limited, but there are a lot of older movies that are great and can be streamed.  I use my netflix streaming mostly for tv shows that I loved when I was younger.  I share them with my kids.  I think being able to view them by using the XBox is a great idea.  

@Dustin:  You don't need an adapter to play on xbox live, just plug in your ethernet cord to the back of your box.  You just have to set up an account.  The Wii and PS3 have decent online gaming but not compared to Xbox's version.  You should at least try a free trial membership.  You will likely subscribe afterwards.   I have Xbox Live and have had the service for years now since the original xbox offered it.  I don't have Netflix, nor have I ever, but I think I will be trying it for $5 a month when this comes out.  I just hope that they offer HD versions like they do in the Xbox Live Marketplace.  I have never had a problem with quality of the movies from the marketplace so I hope Netflix will maintain the same level.  The list of movies seems a bit concerning, but for $5 a month it will be worth a shot.

i still dont like the fact that both Netflix and Microsoft forwarded the burden of cost to the customers for this so called new deal. i already paid for netflix content subscription, why should i pay more to Xbox Live just to watch it. if anything, Netflix should barry the cost of this distribution, not us. i used to pay for Xbox Live, but not anymore, it's the biggest waste and corporate scam by microsoft. they're not getting anymore of my money as far as Xbox Live goes.

SONY is not charging you for playing games online, Neither is Wii, and this goes all the way back to the fundamentals of PC gaming. you purchase a piece of game, you should be able to play online whenever and however you want, why should you pay again just to play a game you already bought.

Movies is just a small part of the instant lineup.  You can watch whole seasons of many of your favorite TV shows as well which doesn't seem to be mentioned anywheren this article.  That in itself is a great benefit.  You can spend over 1000 hours just watching a single season of Law and Order for the cost of your monthly subscription.

I am actually glad they did this.  Now I don't have to get that $99 Roku box addon to watch it on a television.

My home network is wireless.  my TV and Platforms are no where near my router.  I would have to buy the xbox wireless adapter for $89.00.  Xbox could have gained even more xbox live customers if they had a built in wifi like the wii and the PS3.  even mys PSP has built in wifi and my lap top that I am useing now.  Xbox missed the mark here.  I can understand why they didn't include the HD player in there systems but WIFI.....  Come on....  It's a given....

I havent even played my xbox since Halo3 came out.  That game was way easy.  I am waiting for gears of war 2.  It seems you get about three to seven good games a year but only one or two With exclusive titles.  This is the down side of competative markets.  it's nice to be able to have each system but I wish I could get it all with just ONE......

Like I said before, the first one to come up with unlimited DVD's, Blue Ray's, TV showes on demand, and game rentals by mail or in store for one great price will get all my business.

good by COX cable,

good by TV guide,

good by movie tickets,

good by lap top,

Good by Indemand,

Good by satalite radio,

Good by News paper,

Hello Blockbuster powered by PS3

hello Netflix powered by Xbox

Hello Itunes powered by Wii