I loaded up Netflix on my PS3 for the first time yesterday. Aside from having to use my PC to activate my PS3 Netflix account, everything went very smoothly.
I decided to watch a fairly recent movie, which should have decent picture quality, called "Don't Mess with the Zohan."
PS3 HDMI to Samsung 52" LCD. 3Mbps DSL over Wireless LAN.
The video quality during the movie ranged from poor (VHS-like) to good (DVD-like). I don't know if Netflix constantly adjusts the picture quality based on your download speed, or if it just picks one speed at the beginning for the whole movie. However, it certainly seemed as if the picture quality went from VHS-like to DVD-like. I paused the movie several times, and it seemed that the worst picture quality occurred immediately after I unpaused the movie, and then went back to good quality sometime afterwards.
Audio - I don't have a good surround sound system, so I can't really comment on the quality, other than to say that nothing seemed wrong.
Ease of Use - very simple and intuitive. I easily browsed my "Play Now" queue and also skimmed through other available features in different movie categories (e.g. Comedy, SF & F, etc).
There is some delay in streaming when trying to rewind the movie, so I wouldn't recommend this if you were trying to study a certain scene for some reason (like if you were trying to study the jiggly bits in more detail).
I am definitely going to use this to stream older movies (where the content is more important than the eye candy). For good picture quality, I'm still going to buy Blu-Ray movies.
Is anyone else getting similar results with picture quality?
Given that Sony stands to profit from increased Blu-Ray sales, do you think that they would deliberately limit the picture quality available through Netflix (assuming that bandwidth limitations increased nationwide to accomodate faster streaming)?