There has been loads of speculation for the past 2-3 years over Netflix, and the future of movie delivery. Sending movies over the wire instead of using mail delivery was never a question of if, but when. Well, after much speculation and wondering if they'd launch set top boxes, partner with TiVo, or offer downloads to your computer, it looks like Netflix launched a "Watch Now" option to select users.
Instead of downloads or even the ability to stream to your living room, it looks like Netflix embraced the culture of Youtube and simply tossed movies into a flash browser interface.
The upside is that it should work on most browsers and platforms (no need for windows-only DRM) It's Windows/IE only, and the downside is you'll have to watch films on your laptop instead of your living room TV.
The Hacking Netflix blog also has a video demo of the feature in action.