Update: Netflix's Steve Swasey on the Netflix blog says that only a few hundred titles out of 12,000 are not licensed for the Xbox at this time:
As watching instantly becomes a more prominent part of the Netflix service, our goal is to have all of our streaming content licensed for all of our partner devices. We’re doing well in this area, but it will take some time before we fully achieve that goal. Today, titles regularly come in and out of license and there is a natural ebb and flow to what we have on license at any given point in time. In the case of Xbox 360, a few hundred titles are temporarily unavailable to be streamed via the Xbox game console. Those titles are still available to be watched on subscribers’ computers and on TVs via other partner devices, and we hope they’ll be licensed for Xbox 360 shortly.
Joystiq discovered that some Netflix streaming titles are not available on the Xbox 360. All of the titles appear to be Sony-owned, and since Microsoft has a "console exclusive" on Netflix streaming, it's not surprise that Sony would want to opt-out of the Xbox.
Rick writes, "It looks like all sony owned pictures / shows are blocked from the xbox 360. You can not tell which movies are blocked untill you put them in your instant queue. This hidden restriction is unbeliveable, and a valid reason not to bother with the service. Out of 270 choices on my queue, 51 are now unwatchable.

Thanks to Andy, Nathan, Rick, Anthony, and Jay for sending this in.
That is a very immature decision from Sony. Disappointing.
Posted by: Chris O. | November 18, 2008 at 08:18 PM
Update has been posted at the Netflix Community Blog
Posted by: Jay | November 18, 2008 at 08:44 PM
Way to be a dick, Sony.
Posted by: Adam | November 18, 2008 at 08:50 PM
Typical, but I can't really blame Sony from a business stand point.
Posted by: Anthony | November 18, 2008 at 09:01 PM
Just one more reason not to adopt Blu-Ray, Sony's format. Sony = Worst company ever.
Posted by: John G. | November 18, 2008 at 09:05 PM
What's worse is that they were working last night!
Posted by: Random_Tangent | November 18, 2008 at 09:21 PM
John G., Blu-ray is not "Sony's format." http://www.blu-ray.com/info/
Posted by: Sujay | November 18, 2008 at 09:38 PM
Don't be bitter. Sony even screws their own divisions with decisions like this. This is part of the reason why the greatest name ever in portable music - the Walkman - now is known by almost nobody under 25. The powers that be at Sony did not want to sell devices that could poach their own content. So they let Apple have a gazillion dollar industry.
They did win the Blu-ray battle, though (I would disagree with John that Blu-ray is not Sony's baby. It's like saying that Iraq War is not America's war because Denmark sent some troops. Blu-ray is a big win for Sony).
Posted by: Seth | November 18, 2008 at 10:47 PM
Sorry, still holding a grudge over the whole Sony rootkit thing a while back. :)
And yes, Blu-Ray is Sony's baby. Just like HD-DVD was Toshiba's baby. I stand by that comment, no matter what some Blu-Ray PR website claims.
Posted by: John G. | November 18, 2008 at 11:08 PM
Here is a new video game site to check out. They have a nice selection of rare games also! The website is:
www.gamegalaxxy.com
Posted by: Larry Porter | November 19, 2008 at 03:49 AM
No surprise. This is exactly the sort of thing that's bound to happen when you have mega-companies that own media and also manufacture devices that play that media.
Posted by: | November 19, 2008 at 04:49 AM
I can't even get the device authorization to work after numerous different codes and attempts. So I guess I'll just keep watching on PC for now. Its not that big of a deal since I have a HTPC EXCEPT for some reason they've given some exclusive HD resolutions to the 360 that you can't get on a PC. They need to reconsider that considering the unreliability of the Live network and these Sony restrictions. I HATE artificial restrictions like this.
Posted by: rural | November 19, 2008 at 09:11 AM
anyone have a list of the HD movies available to stream to the xbox?
Posted by: | November 19, 2008 at 09:22 AM
I got a early update on Monday for my Xbox and restarted my Netflix account to try out the streaming and I think it's great.
I was wondering why some of the movies weren't showing up on my queue on my Xbox.
As far as any HD content, I was able to see Heroes and 30 Rock in HD. I tried a few movies that I knew were in HD but they came out as SD.
So far, the only HD quality stuff I've seen is television shows.
Posted by: RT | November 19, 2008 at 10:15 AM
I could not activate either. I read somewhere that it's not just us. I'm sure Netflix and MS will figure it out before the end of the week.
Posted by: Paul | November 19, 2008 at 10:48 AM
I told you so.
The Roku Netflix Player is still the best, least expensive, most efficient way to stream Watch Now to your living room. It uses far less power, makes a lot less noise, and has no licensing issues with Sony or anyone else.
Microsoft makes you pay for a Gold subscription on top of your Netflix subscription, and then you don't even get a complete experiences.
Just spend the $100 and get the Roku box. I love mine. It gets used a lot.
Posted by: ZeroCorpse | November 19, 2008 at 11:42 AM
Sujay, Sony originated and spearheaded the Blu-Ray format. The fact that other companies jumped on the bandwagon doesn't change the fact that it was Sony's baby.
Posted by: gibsonharrier | November 19, 2008 at 01:41 PM
Terrible move, Sony. Is your goal to get people to hate you?
I fear this means there is not much chance of seeing Netflix on the PS3 any time soon.
Posted by: CopaceticOpus | November 19, 2008 at 02:21 PM
I must have missed reading the fine print somewhere that claims '...Microsoft has a "console exclusive" on Netflix streaming.'
SONY's a dick. Microsoft's a dick. And now, by virtue of spreading their legs, NF's the bitch. Here's to hoping we all wear protection while buffering the packets.
Posted by: dAVe | November 19, 2008 at 03:19 PM
Netflix screwed the pooch on this one. They should know better than to exclude the CONTENT PROVIDERS from possible profit streams. Netflix needs to keep the content providers HAPPY, not angry.
Sony shouldn't unlock the movies until PS3 streaming is allowed. Exclusive deals don't do us consumers any good.
Posted by: Donuts | November 19, 2008 at 03:58 PM
I think Donuts said it best. Exclusive deals are never any good for the consumer. It's simply a corporate power trip.
Posted by: Pfunk | November 21, 2008 at 12:16 AM
Typical SONY.
I do despise that company. Few companies do I get excited about when they have financial problems - SONY is one of them.
Why do people blame this on Netflix. You know SONY is likely asking an unreasonable and excessive licensing rate. Because they don't want their movies on the Xbox platform when they're pushing the PS3.
Frankly, I think here would be a good copyright case for the courts. Hit SONY up for infringement and monopoly behavior. Leveraging it's movie portfolio against it's hardware competitor.
- The Saj
Posted by: Jason The Saj | November 25, 2008 at 02:01 PM