Microsoft says they have an ‘exclusive partnership’ with Netflix
“This exclusive partnership [with Netflix] offers you the ability to instantly stream movies and TV episodes from Netflix to the television via Xbox 360. Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox Live Gold members who are also Netflix unlimited plan subscribers, at no additional cost.” – Microsoft statement
There has been rumors for a very long time that Netflix was working with Microsoft and Nintendo to bring their services to each console. I’m not sure if this is Microsoft’s way of throwing off Nintendo fans, of squashing the rumor of Netflix coming to the Wii.