Netflix and Microsoft has confirmed the deal and here are some of the details:
1. Use of streaming Watch Now videos on your Xbox 360 requires both a Netflix membership as well as an Xbox Live Gold membership, which runs about $5 a month.
2. You can mark Watch Now movies or shows in your browser and they’ll show up in your media list back on the Xbox. Likewise you can browse and rate the catalog right from the console.
3. Microsoft says the movies should start playing in 30 seconds or less–the same as the desktop version.
4. Users can fast-forward, rewind, and pause videos using the controller or a compatible media remote.
5. The Watch Now library is the same as what’s available on the desktop and on other set-top streaming devices.
Previously, you had to use thrid party solutions or hack that involves having Microsoft Media Center to get streams from Netflix. Now you don’t need them anymore.
More details can be obtained from Xbox.com