Netflix to go disc-free on PS3
In addition to this great update, the Netflix user interface is also receiving an upgrade for a more advanced browsing experience. The startup and playback will also be sped up compared to the existing disc-based approach.
The good news doesn’t stop there! Some content will now be provided in 1080i resolution, with Dolby 5.1 surround sound. Previously Netflix maxed at 720p with 2-channel audio.
I knew there was a reason I didn’t sell my PS3.
From the PlayStation blog