Internet Connection Requirements
Netflix requires a broadband Internet connection to deliver content to your Xbox 360. There are two ways of connecting your Xbox 360 to the Internet; you can use an Ethernet cable or connect to a wireless router. If using an Ethernet cable, you can connect directly to a broadband modem or through a network router. Wireless connections require setup in the Xbox 360's Settings menu. To set up a wireless connection, you need your network's name and password.
Xbox Live Account
In addition to having Internet access in you home, you must purchase an Xbox Live subscription to connect to use online services. As of August 2011, there are three different Xbox Live packages for purchase. These packages include a Free Trial Membership, a Gold Membership, or a Gold Family Membership. Each offer has different benefits and stipulations. Netflix will work with either of the three subscription plans.
Netflix Account
Once you have an Internet connection and can connect to Xbox live, you can begin the Netflix installation process. First create a Netflix account on Netflix's website. As of August 2011, instant streaming plans start at $8 monthly for unlimited access to Netflix content. Netflix will ask for identification and your credit card information. You also need a valid email address.
Netflix Software
The final requirement for streaming Netflix media to your Xbox 360 is the Netflix application. The software is available through the Xbox Live Video Marketplace and is free of charge. After downloading and installing the application, you're given a code to enter on your Netflix account. This will link the device to your Netflix account and validate that both accounts are eligible to use the instant streaming service.