PS3 gets Netflix

The Xbox 360 is losing one of the bigger exclusive weapons in its home entertainment arsenal.  Netflix has announced that it will begin instant streaming of movies via the PlayStation 3 next month.

As an added incentive, PS3 owners won’t have to pay the premium that Xbox Live customers do. (Netflix streaming is currently only available to Xbox Live Gold members – who pay a $50 annual subscription fee.)

The PS3 currently has a much smaller installed base of customers than the Xbox 360 – but is hardly slouching. 9 million US households own the machine, which is roughly 2 million shy of Netflix’s total subscribers.

Watching streaming films via the PS3 will be a little different than it’s done on Xbox. Users will need a special Blu-ray disc (which will be made available for free – request one here) in their system to watch. As with the Xbox version, users will be able to put together a queue via the Web or directly on their console.

It’s a notable expansion for Netflix, which the company teased last week during its earnings call. The question now is when Netflix and Nintendo will tie the knot, since the window of exclusivity has obviously ended. Microsoft’s reaction will also be one worth watching.

Will the company make Netflix streaming available to all customers for free? Will it enhance the service – or might it have another streaming service up its sleeve (perhaps Hulu?) to roll out as a complementary streaming service some time in 2010?