Hear that? That's Blockbuster soiling itself. Netflix is hard at work on a downloadable movie set-top box that will allows users to download and watch movies without DVDs. Like the standard Netflix service, you will pay a flat fee to watch a certain number of movies per period. Add a new movie to your queue and the box downloads it overnight and you're the happiest boy in the world.

Speaking at an Independent Film & Television Alliance production conference in Beverly Hills, Besner said the business model is still being worked out, but the download service likely would be offered in return for the subscription fee members pay for conventional DVD rentalsrentals. Service could launch as early as this year.

Clearly, this is the way of the future and I'm absolutely thrilled Netflix is spearheading this.

Netflix thinks inside the box [Variety]