As well as a subscription to the DVD rental service, viewers will need a free disc–available from Netflix and “on its way” to all who reserved one–to access the service.

A downloadable Netflix application is scheduled for “late next year.” Industry analyst Michael Pacther believes the disc solution is necessary due to an exclusivity agreement Netflix holds with Microsoft, whose Xbox 360 has integrated Netflix streaming support.

Pachter also predicted “a similar arrangement will be announced for the Wii in the next 12 months,” a move Netflix has often teased through statements and surveys.