Initially will need to load a Disc as it ties into BDLive but it looks like a future OS release of PS3 will roll it into the OS with no disc needed.
“Initially, watching movies instantly streamed from Netflix via the PS3 system will be enabled by a free, instant streaming Blu-ray disc,” Sony explains, which “leverages Blu-ray’s BD-Live technology to access the Internet and activate the Netflix user interface on the PS3 system.”
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