Sony and Netflix announced that the PS3 will soon be able to stream Netflix content. Sony is expecting for users to start using Netflix’s Instant Watch service next month at no additional cost, unlike the Xbox 360 users who need to fork over $50 for Xbox Live Gold membership. This service is available for the subscribers of Netflix, there will not be a streaming service only plan as previously speculated.

Netflix members and PS3 must insert and use a disc in order to access the instant watch service, however, an update for next year (2010) is in the works for Netflix to be integrated into the XMB. The integration of Netflix to the XMB can’t be done at the moment due to a pre-existing contract with Microsoft. Users can now reserve their Netflix discs via this page. The disc will be delivered free and will be yours to keep. Keep in mind that there will not be any difference between the content available on Xbox and PS3. Also no special features will be added to the PS3 for the service.