Microsoft announced back in E3 that an update later this fall would enable Netflix shared viewing.  Just this week at Comic Con this new feature was demonstrated.  Here is a video showing what this will look like.

As you can see, there are still some features that weren’t included, such as the ability to search for new movies to add to your queue.  Personally, I would also like the option to be able to watch the movie in full screen and get out of that little theater layout.  I’m assuming that all party members also have to be Netflix subscribers with the Netflix application installed on their Xbox 360.

Just recently Microsoft announced this will be rolling out to the public August 11th with a limited public release starting this week to those who signed up for it through the Microsoft Connect site.