Today, Netflix unveiled a Roku designed $100 set top box that delivers streaming movies to your television.

Quote:

The Roku box is about the size of a paperback book, has no hard drive, and simply streams video through an ethernet or Wi-Fi connection. For the best possible viewing experience, Netflix recommends an Internet speed of at least 1.5 Mbps.
There is no additional monthly fee for use beyond Netflix's usual monthly charge (minimum $9/month) to have unlimited access to Netflix's 10,000 streamable movies.

Comparisons have already been made to the Apple TV, which offers a $229 set to box which allows you to purchase or rent movies on a per item basis. Forbes directly compares the two devices which appear to be targeting different markets. Apple's solution provides fewer (~1000) movies, but offers new-release titles and high definition content. Netflix's 10,000 titles consist mostly of older library titles and presently offers only standard definition video and stereo audio. Netflix's box, however, is said to be upgradable to High Definition and surround sound through a future software update. Like the Apple TV, Netflix is also planning to allow their device to accept non-Netflix content in the future. Gizmodo provides an early review of the unit.

Some of these differences are likely related to movie studio's willingness to license specific content in certain ways (sales, rentals, vs unlimited subscription model).

http://www.macrumors.com/2008/05/20/netflix-launches-movie-streaming-set-top-box/

My thoughts have been blogged: http://www.mikull.com/netflix-launches-set-top-box/

I came here to post about this today, Mike always a step ahead. /wink

So much was made about the battle between Blu ray and HD but with all of these recent developments they might both be losers.  Why buy anything when you can have a set top box and an $8 subscription per month?  I personally stopped buying DVDs years ago, I just didnt watch them enough.  As soon as they bring the quality to HD level we'll see a steep decline in physical media.

Less than one month after introducing a set-top box that allows "instant" viewing over a broadband connection, Netflix says that the current supply of devices has sold out. CEO Reed Hastings did not disclose any sales figures, but he told Bloomberg News that the company is pressing their supplier, Roku Inc., to step up production. The backlog of orders will reportedly take six to eight weeks to fulfill.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5AgcGMmW1z4

Once they ramp up the amount of movies that you can watch, and actual get some good titles going.  I think i'll make the switch to Netflix.  Although I am going to miss my free Video Game rentals dearly.