I was going to cancel my Netflix subscription because I was at a point where I was keeping the disks for three or months at a time. When I discovered they were streaming online and I didn't have to pay one cent extra to watch online, I was hooked.
It's true their online catalog is limited but considering this article:
Streaming video cannibalizing DVD rentals, says Netflix
Netflix says that DVD rentals are down for subscribers who make use of the company's online streaming service. Though it doesn't hurt Netflix's bottom line, the trend certainly spells bad news for physical media, including Blu-ray.
Those who make use of Netflix's ever-popular "Watch Instantly" streaming service rent fewer DVDs than the rest of the population, a Netflix executive revealed during the company's quarterly earnings call on Monday. The phenomenon reinforces the fact that online offerings really do compete with physical media for the same pieces of the movie pie, and that could prove worrisome for Blu-ray as online video continues to grow in popularity.
During the call, Netflix CEO Reed Hastings noted that there were millions of subscribers using the Watch Instantly feature, and that Netflix had seen a "substitution effect" among subscribers who do so.
"We are seeing early signs of less DVD usage with some subscribers who are also watching instantly as compared to subscribers who only receive DVDs," said Hastings. "Time will tell whether this substitution effect is an attribute of early adopters or a mainstream behavior."
Our money is on it becoming a mainstream behavior...
I think they're going to greatly expand their online selection. :)
EDIT ADD:
http://arstechnica.com/media/news/2009/01/streaming-video-cannibalizing-dvd-rentals-says-netflix.ars">link