Netflix on the iPhone?

11:50 AM -- Rumors have long been circulating that Netflix Inc. (Nasdaq: NFLX) is developing an iPhone app. But now there's been a more definite indication that the movie rental company may be looking to stream movies and TV shows to the mobile devices over WiFi.

In a recent survey to some of its users, Netflix became stunningly specific on this topic:

Imagine that Netflix offers its subscribers the ability to instantly watch movies & TV episodes on their iPhone. The selection availability to instantly watch includes some new releases, lots of classics and TV episodes. There are no advertisements or trailers, and movies start in as little as 30 seconds. You can fast-forward, rewind, and pause or watch again. The movies & TV episodes you instantly watch are included in your Netflix membership for no additional fee.

Whenever you want to instantly watch content on your iPhone, your iPhone must be connected to a Wi-Fi network (such as one you might have at home or at work, or in public places like coffee shops, book stores, hotels, airports, etc.)

If this functionality were available, how likely would you or someone in your household be to instantly watch movies & TV episodes on your iPhone via a Wi-Fi network?

In January, Netflix CEO Reed Hastings said on the company's fourth-quarter earnings call that developing an iPhone app was "not a huge priority for us because we are so focused on the larger screen."

— Erin Barker, Digital Content Reporter, Cable Digital News