Netflix has told Joystiq that a disc-free version of the service will arrive in the form of an update sometime next year.
Until then, users will have to pop in the Netflix disc to access the service until it becomes available.
"Netflix members and PS3 owners have really wanted a way to instantly watch movies and TV episodes streamed from Netflix via the PS3 system," a representative told the site. "The instant streaming disc represented the fastest and easiest way to let them do this.
"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."
To clarify, the disc-based service has nothing to do with Microsoft.
"The Netflix agreement with Sony for PS3 is consistent with the terms of our partnership with Microsoft for Xbox 360," the rep added. "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."
More through the link.