According to an “industry executive familiar with Netflix’s plans” video streaming from Netflix may be coming to the iPhone. The streaming will work with Netflix’s existing Watch Instantly service, which means that subscribers will be able to stream movies directly to their iPhone.

Sounds like this could be a nice perk for Netflix subscribers and possibly a way to push current subscribers to upgrade to a higher monthly plan so they will be allowed to stream a little more (for those unfamiliar with the Watch Instantly service, the amount of hours that you can stream per month is set by your monthly rental plan with the highest plan allowing unlimited streaming) per month.

Anyway, assuming this app does see the inside of the App Store, it would make a perfect combination with the existing (third party) app PhoneFlix. Given that, users would be able to manage their account and queue as well as watch movies while on the go.

Additionally, this should go without saying, especially after we saw the restrictions with other video apps such as SlingPlayer, that the streaming will be restricted to a Wi-Fi connection. Finally, as you would expect, a Netflix rep could not confirm or deny this rumor.

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