NetFlix recently introduced a new feature that lets subscribers Watch videos directly over the internet. The feature is available for some of the many movies that NetFlix has in their catalogue. Notice that said "some" and not all. The selection is typically older titles, titles that have been available in DVD format for quite a while (a random sampling seems to find the titles are normally at least a year older, if not older).
There are of course bandwidth limitations and requirements and there are also restrictions on just how much over-the-internet video watching a customer gets in a month. NetFlix is actually fairly generous in that area, granting customers 1 hour of over-the-net video watching for each dollar spent in monthly rental fees from NetFlix. So, as an example, if you are on NetFlix's popular 3 discs out a time unlimited monthly rental for $17.99, then you are entitled to up to 18 hours of over-the-net video watching.
I wouldn't say that the feature is something I'd go crazy over, but it's a cool addition to the benefits of a monthly subscription to NetFlix and the instant gratification factor is very high. If I'm sitting around on the weekend (or any evening for that matter) and I've already watched and sent back the traditional discs that I've had out for the week I can still be entertained by watching something in the comfort of my house. It works great for comedy videos (stand-up comics, etc.), old movies, and other films that I might otherwise ignore in favor of newer, more popular, films and is a great way to take advantage of the recommendations features at NetFlix.
Recommendations work by using using the ratings you've submitted for films you've watched to build a database of other titles you might also enjoy. Most of the time I ignore the recommended titles since I have very ecclectic tastes in films and also have the tastes of my family members impacting upon the list of recommendations I get. Using the Watch It Now feature lets me watch something that was recommended without feeling like I've used up valuable slots in my NetFlix que for titles I know for sure I want.
If you've not tried the feature, then what are you waiting for? Get some additional entertainment value out of your monthly NetFlix fee.