The greatest change to hit our living room since HDTV arrived came last month in the form of the November Xbox 360 system update — known as the New Xbox Experience — which included the much-anticipated Netflix Watch Instantly feature. The whole idea of this on-demand streaming service is that you don’t have to wait for DVDs to arrive in the mail — you just pick the movies on the web site, then fire up your Watch Instantly device. Throughout 2008, Netflix has been rolling out Watch Instantly to various platforms — first to PCs, then through a $99 dedicated box you attach to your TV, and then to the Xbox. The past two weeks have seen the service added to two more devices — Samsung Blu-Ray players and the TiVo HD. I have both the TiVo HD and an Xbox 360, and have tried out Watch Instantly on both.

I haven’t done extensive testing, so I’ll make this quick: it’s better on the Xbox. Movies seem to be a notch lower on the quality scale when viewed through the TiVo, as if my internet connection is slower than it really is. Even my wife noticed the lesser quality immediately, and she’s not nearly as much of a HD nut as I am. In addition to being so obviously pixelated, the TiVo variant of the Netflix software stretches 4:3 aspect movies for some reason; I checked Eraser the other night, and the TiVo stretched it while the Xbox’s Netflix program played it in its proper ratio (with black bars on the sides — I hate stretchovision, I’d rather have the bars than fat faces).

Finally, I found the Netflix interface on the Xbox more pleasant to use — the new sliding panel interface of the NXE plays well with browsing movies, while the TiVo’s Netflix interface — like the rest of the TiVo interface — seems dated and clunky. I love my TiVo, but they really need to get moving on that rumored interface overhaul.