Online DVD/streaming video people Netflix announce today one million Xbox 360 users have activated the company's Watch Instantly service since the partnership with Microsoft three months ago. More, the community has viewed 1.5 billion minutes of movies and television programming.

Netflix is currently the only company offering a subscription-based streaming video service, which it has done for two years, though up until recently on PCs only; the likes of Amazon, Apple and Blockbuster utilize pay-per-view rentals. Last month they reported stronger than expected quarterly results, attributing the growth to its Web streaming service.

This all appears to be in line with analysts' guaging, who feel the traditional model for delivering home video needs a new model, especially in light of declining DVD sales even from the likes of Disney.

Netflix is available to Xbox LIVE Gold members ($50/yr) for $9/mo, assuming they are also members of the service. Its 12,000 movie library consists of less recent major films, as the big studios have resisted releasing the blockbusters digitally.