Netflix instant watch on iPhone soon?

The word on the street is that Netflix is going to let iPhone users stream movies via WIFI. While the idea would be well received by customers, we wonder how the implementation would work. The iPhone doesn’t support Flash (or Silverlight), so it’s probably not going to be a web portal. Netflix can also develop its own application and take care of everything itself (rights management, streaming, decoding): that might be the most likely option. What’s clear is that AT&T would not like the idea of users watching video on its wireless network without paying an extra fee, and Apple will probably side with AT&T on that one. The issue is that AT&T’s own video-streaming service sucks. Oh well, so much for net neutrality.