ARS Technica reports that Netflix is planning on offering a streaming-only subscription option–doing away with DVDs.

Expanding subscription options is a great idea, but are Netflix’s customers ready to ditch DVDs? Can all of Netflix’s customers get access to all video streams? Sony is shamefully leaving PS3 owners in the lurch when it comes to Netflix’s video streaming options, and keeping Xbox 360 owners from viewing Sony titles.

I would love to take advantage of Netflix’s streaming option more frequently, but I can only receive the stream on a computer, which sits happily in separate room. Even though that computer is connected to our living room HDTV display and our sound system, there’s no “remote” for pausing, rewinding, or fast-forwarding, making it a rather inconvenient setup.

Samsung has Blu-Ray players that allow Netflix streaming. But rather than Sony pushing the PS3 as the centerpiece of an entertainment center, Sony cripples the PS3 by not enabling Netflix’s video streaming service, apparently to promote its own pricey video rental/streaming service with a rather anemic title selection. The Xbox 360 can receive Netflix’s video streams, but Sony made the lame move of cutting off a distribution channel for its own movies by forbidding Netflix from streaming Sony titles to Xbox 360s. Did Sony get new customers by making that move?

ARS Technica’s article also indicates that Netflix is preparing “itself for an expected transition away from physical DVD media” through this streaming-only option. I don’t see Netflix throwing out DVDs any time soon. There are too many technical hurdles that people have to overcome to get video streams to their living room TVs. It is simply easier to keep that DVD player around than throw it out the window. Netflix stands to lose a lot if it goes that route too soon. However, for those ready to switch to on-demand, DVD-less video viewing, the new option will surely satisfy, provided video quality and selection can remain high while Netflix is forced to stream only to movie-company selected/approved devices.