Netflix announced that it is now offering TV episodes as well as movies via its video streaming service on iPhones and iPod Touch devices. Depending on your data plan, Netflix on the iPhone could be rather expensive.

The app itself is offered free of charge and Netflix subscribers can stream video at no additional charge, as long as they are part of a subscription plan with a cost of $8.99 or more per month. According to the company, runs on any iPhone or iPod touch device that has iOS version 3.13 or later installed.

Netflix said that video streaming works via Wi-Fi and 3G. However, given the fact that AT&T has capped the bandwidth for smartphone data usage to 200 MB or 2 GB.

If you are using Netflix’ streaming service, you should be aware that the average 90 minute Netflix movie consumes about 225 MB of data. If you are on a 200 MB data plan ($15 per month) then watching just one movie will exceed that limit and prompt AT&T to charge you $15 for an extra 200 MB of bandwidth – which would make it a rather expensive movie.

Of course, there is the 2 GB data plan for 2 GB, but even then you may want to watch how many movies you watch over the 3G network and may limit yourself to Wi-Fi watching. Upgrading your 200 MB plan to a 2 GB plan may be a good idea if you are planning on using Netflix on your iPhone.

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