UPDATE: Netflix VP Steve Swasey hasn't said if Sony requested this, but he did have this to say on the matter:

"As watching instantly becomes a more prominent part of the Netflix service, our goal is to have all of our streaming content licensed for all of our partner devices,” he said. “We’re doing well in this area, but it will take some time before we fully achieve that goal. Today, titles regularly come in and out of license and there is a natural ebb and flow to what we have on license at any given point in time

In the case of Xbox 360, a few hundred titles are temporarily unavailable to be streamed via the Xbox game console,” Netflix VP of corporate communications Steve Swasey told MTV Multiplayer in an e-mailed statement tonight. “Those titles are still available to be watched on subscribers’ computers and on TVs via other partner devices, and we hope they’ll be licensed for Xbox 360 shortly."

Source: [MTV MultiPlayer]
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Now on Netflix your instant queue has a "notes" column and in that column all movies from Columbia Pictures are listed as "not available on Xbox".

So why is this? Currently there's no word from Netflix or Microsoft, but the first explanation that comes to mind is the fact that Sony, Microsoft's competitor, owns Columbia Pictures.

Strangely enough though, movies from Sony Pictures can still be streamed to the Xbox 360.

This article will be updated when any new information is available.

Picture from Joystiq:



Source: [Joystiq]

that is pretty lame.

The streaming netflix thing is awesome
I'd like to see them add more to the library as well as allow us to watch stuff they already have!