Microsoft has published a press release on Monday,regarding it’s a new alliance with Netflix -’unveiled an exclusive partnership to offer consumers the ability to instantly stream movies and TV episodes from Netflix to the television via the Xbox 360 video game and entertainment system. Xbox 360 will be the only game system that lets users instantly watch movies and TV episodes streamed from Netflix. This movie watching innovation will be available to Xbox LIVE Gold members who are also Netflix subscribers and will let those users enjoy streaming movies from Netflix on Xbox LIVE at no additional cost.’

Details here:-

http://www.microsoft.com/Presspass/press/2008/jul08/07-14InstantStreamPR.mspx

But if you are not a Xbox gold member but wish to enjoy the same via Media Center then try vmcNetflix

http://myweb.cableone.net/eluttmann04/projects/vmcNetFlix/default.htm