Netflix has introduced a new Instant Watching capability which customers have lapped up...nearly 2 million movies have been watched in under 3 weeks since its introduction.
Check their demo.
My take...I love this functionality. media convergence has been a when rather than an if. I dont mind watching it on my laptop but I'd rather watch it on my television and work with the controls of my remote. It will be only a matter of time before TiVo and Microsoft MCE integrate Netflix functionality as plug-ins and extensions.