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I just saw this announcement today regarding a deal between Microsoft and Netflix. In the very near future, Netflix subscribers will be able to view Netflix Watch Now streaming movies from their Xbox 360 systems. This service is not available with the current Xbox 360 now, but will be included in the upcoming XBox system upgrade. Netflix membership is of course required, as well as an XBox Live 360 Gold membership for $5 a month.

Another feature with the upcoming Xbox 360 upgrade is the ability to view and share streaming movies with up to seven friends, a feature not possible with any browser based system. Users can also fast-forward, rewind, and pause videos using the controller or a compatible media remote. Microsoft says the streaming movies should be able to start in 30 seconds or less.

I am curious as to how well this service will be welcomed by Xbox users. Aside from playing countless hours playing FIFA 08 online, I ocassionally watch DVD movies from the Xbox 360 console. I do have Netflix membership and Xbox Live Gold membership, so I am all set for this new home theater experience. I’ll certainly will give it a try. Now, I’m just waiting for the Xbox 360 system upgrade.