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This is a major leap for Netflix. Dolby Digital Plus is a high definition audio format that supports up to 7.1 channels of surround sound, so there is some room to upgrade. It had previously enabled high definition video on a portion of its media, but the addition of premium sound will make it an even more viable competitor to physical media like DVDs.
The fact that the service is launching first on PlayStation 3 will come as a disappointment to many, but it could just be a case of Netflix trying not to play favorites. Microsoft's Xbox 360 was the first console to get Netflix streaming back in November 2008.