Joystiq spoke with the folks over at Netflix and there are some details they gave out regarding the PS3’s side of the service. The most interesting question and answer came from this, which resulted in me saying “Dang it!” :

Why not distribute the application via PSN download or firmware update, and then embed it into the XMB?

Again, the instant streaming disc represented the fastest and easiest way to let PS3 enthusiasts get Netflix on the PS3. Late next year we expect to have an embedded solution available for PS3s via a system software update slated for release through the PlayStation Network.

So there won’t be an embedded option until “late” next year (unless, I’m sure, they manage to get it up beforehand), so could be a good 12 months from now, and if that’s the case, I guess a disc will have to do until the embedded software comes out, which is better than waiting another year!

Also, it’s supposedly set up much like the 360 version, where you can browse lists of movies and whatnot in different categories (the 360 supposedly being limited to 100), but you’ll have access to the entire library. Both versions are nearly identical in what they provide (save for the Party watch feature on the 360, which, in my opinion, is kinda dumb), but, again, the PS3’s access to it will be free (and if you’re planning on watching a movie anyway, the disc shouldn’t be a big deal. At least an implemented software update is being worked on) as opposed to Microsoft requiring a Gold membership (which they don’t plan on changing).