Yes, the Netflix disc has to be inserted every time to access the Netflix service.
Why a disc-based application and not streaming access through the PS3 browser?
Netflix members and PS3 owners have really wanted a way to instantly watch movies and TV episodes streamed from Netflix via the PS3 system. The instant streaming disc represented the fastest and easiest way to let them do this.
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.
Is releasing the PS3 application on a disc required by an exclusivity agreement with Microsoft?
The Netflix agreement with Sony for PS3 is consistent with the terms of our partnership with Microsoft for Xbox 360. Our goal is to give members the opportunity to instantly watch movies streamed from Netflix via the widest variety of Netflix ready devices. All of our partners are aware of our goal.
Is any new content being added to the Netlfix streaming catalog alongside this announcement?
We are constantly adding content to better serve our members, however we did not announce new content alongside the PS3 announcement.
Can users search the entire Netflix streaming library from the PS3? (On Xbox 360, browsing is currently limited to 100-movie categories.)
Similar to Xbox, subscribers can search lists of movies in categories such as New Releases, Drama, Action, Comedy, etc., and will have access to the entire library available to watch instantly.
Will special features typically found on DVD and Blu-ray discs (e.g., additional audio tracks, director commentary, etc.) be available through the PS3 application?
Is there any difference between the content catalog available on PS3 versus Xbox 360?
Does the PS3 application include any features that aren't in the Xbox 360 application?
Are there more features being planned for a future update?
Again, 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.
Finally, what's the update on a Netflix application for Wii?
Certainly, the Wii represents a great opportunity given the size of its installed base, but we have nothing specific to say about it at this point. The Xbox partnership has been terrific for Netflix members, and we're equally excited to announce the partnership with PS3.