Actually Netflix doesn't stream new movies right now, and if they do, they are only allowed to do it for a limited time because of all the cable and rental deals that movie companies have. This does, however put another nail in Blockbuster's coffin.

The technology may be slow now, but within a few years this will work wonderfully. I hope.

While the content may still be lacking, the threat of HD content along with a subscription model, makes this much more attractive than renting from a brick and mortar. I am sure in due time, the entire library will be available. As far as the internet connection, there are more and more options for higher bandwidth services. This is a way for Netflix to embed themselves in the same way IE was able to increase their market share in the browser war.

Yeah, the inventory is pretty lame. Plus, I am not buying an LG tv just for that, Ill stick with my $99 Roku player.

As long as Netflix continues to stream on it's current architecture, I don't think there will be any replacements for Cable for a long time. On weekends and some weeknights the service is so slow and stuttering constantly that it is unwatchable. Plus the only thing the current Netflix library has going for it is it's massive collection of old TV shows - most of the movies they have on there are of questionable quality. Don't get me wrong, I love my streaming Netflix but I don't think the cable companies have anything to be worried about for a long time.