What can make Netflix even more convenient? How about a little instant gratification? Yes, that's right... Today Netflix has announced a partnership with LG to release a set top box later this year that will let you watch movies directly over the internet...
I am very leary that the video and audio quality will be on par with hard copy media. Satellite and cable are good examples of broadcast compression and I for one do not need more of the same.
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I would only be interested in something like this for HD movies with full uncompressed audio, and since the content has to be downloaded, I don't think most people would have the bandwidth to support this. It's a good idea, I just don't see it taking off to well.
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I've used the netflix service a few times and it normally has lots of playback issues related to windows DRM. Now I assume this won't be a problem on a set-top box.
Also you only get stereo and it isn't great quality, I'd say lower quality than broadcast. Not even close to DVD.
Unless they improve it this isn't going to overtake DVD and especially not Hi Def. I only watch documentaries and non-action movies since you don't get surround sound.