Filed as a rumor for now, but Netflix may be looking into expanding its mail order and streaming video rental business to accommodate smartphones. The mobile phone streaming will probably a fast processor and will be in MP4 or m4v video format as the service is rumored to also support the iPhone, a handset which does not support Flash or Silverlight for traditional video or audio streaming.

MP4 and m4v video file formats are natively supported on HTC handsets via the HTC-made media player application. Third-party applications like CorePlayer also support said format, among others.

According current speculations, the Netflix service will only be available over WiFi, and not over 3G, as rumored for the iPhone under tight Apple and AT&T control. Whether the WiFi restriction will carry over to other handsets is unknown at this time.

In addition to the video on demand service, Windows Mobile users can already benefit from queuing their rentals (for watching on their computer or net-connected TV) with the official Microsoft-Netflix app as was demonstrated, or through third-party apps like Pyxis Mobile Smart Flicks, available for no cost.

(via: SlashGear)