Instructions
Scroll to the "Video" tab on the PS3 main menu. Select the "Netflix" icon.
Select "Yes" to install the Netflix application. Enter your Netflix email address and password. Sign in to your PSN account if you haven't already. Wait for Netflix to load.
Use the directional pad or analog stick to scroll through the video selection and press the "X" button to begin watching the selected video. You can search for video by pressing the "Triangle" button and using the on-screen keyboard to enter the name of the video you want to watch.