Yes, you heard right.

In its Q3 2007 call to analysts, Netflix said that it would consider delivering movies to its subscribers via internet-connected HD-DVD players, which include the Xbox 360.

Netflix president said, CEO and Board chairman Reed Hastings as recorded by financial site Seeking Alpha, "In terms of enabling the viewing of online content on the television screen, we are exploring a variety of options, including Internet connected, high definition DVD players, internet connected game consoles, and dedicated internet set tops, with a variety of partners, trying to understand the best ways to provide inexpensive viewing of online content on the television."

This will probably be coming out in the next coming months…So if your 360 is not connected to the internet , which I don't know why since your probably on LIVE 24/7, find a way to connect it.

thanks to xboxscene.com for the article.