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This came out a little while ago, but the rumor is gaining credibility so we'll discuss it here. Netflix apparently accidently leaked some sort of Netflix Downloads service and is currently hiring:

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Netflix is hiring: Director, Product Management The Role:

The Electronic Delivery Service (EDS) will augment Netflix's current DVD delivery model with high quality movies delivered to consumers' home TVs through the Internet, on a subscription basis.

So, ultimately, this thing is happening. This means we're seeing downloadable content from a well-known force in the DVD rental industry, long before any of the other big guys— ahem... Blockbuster, Apple. This also means there will be some in-home hardware that supports Netflix content. Way to go, Netflix.

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