Iphone is too cool to be connected on TV.
Hold on there Sparky...

I have an iPod Classic. I bought the cable set up from Apple that allows you to connect it to your TV.
I tried it with the iPhone 4.
Works like a charm! Set it up the exact same way I set up the iPod Classic. The only difference is that you don't get the text warning message asking whether you want the video signal to go out to the TV. It just happens when you start to play the movie on your iPhone 4.
Simple and easy! Love it when THAT happens!

NOW, having re-read the original question, I have yet to try it with Netflix. I'll see what happens and report back! It helps to read the question first before popping off! My bad...