Android playback of your Netflix streaming movies is coming next year, according to a blog post by Greg Peters in Netflix product development. It's not going to be on every phone, but they are committed to getting something out:
We live to get Netflix on new devices, so the current lack of an Android-generic approach to quickly get to all Android devices is frustrating. But I’m happy to announce we’ll launch select Android devices that will instantly stream from Netflix early next year. We will also continue to work with the Android community, handset manufacturers, carriers, and other service providers to develop a standard, platform-wide solution that allows content providers to deliver their services to all Android-based devices. I’ll keep you updated on our progress. http://blog.netflix.com/2010/11/netflix-on-android.html
What's holding it up? Content owners mandated DRM to prevent people from copying the movies off their handsets and spreading them around the world. Peters notes they've been able to roll out their streaming solution to the iPhone and Windows 7 phone more rapidly because of the closed, proprietary architecture. Android, with it's open source development model is proving to be more of a challenge. Netflix is working with specific (unnamed) handset makers to create secure delivery channels for their streaming content.