Oh, daddy. Microsoft's confirmed the reason Netflix has been so hesitant to lay its hat on PS3 and Wii: it's got an exclusive deal in place with the US online movie provider.
According to the update notes released as part of today's 360 summer dashboard update, the platform holder stated the following:
This exclusive partnership offers you the ability to instantly stream movies and TV episodes from Netflix to the television via Xbox 360. Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox LIVE Gold members who are also Netflix unlimited plan subscribers, at no additional cost.
And the quarterback is toast. Thanks, Engadget.
Update - The passage above is actually contained in the original Netflix-360 press release. From July 2008. Thanks, Kingsgoon.