It’s true: Netflix is reaching out to the Android market. Netflix has launched the long-awaited Netflix app for Android. The app is free to download and includes “Watch Instantly” streaming support.

There’s a catch, though. The app won’t work on all Android-based phones. Only a small handful of phones support the new app. As Roma De, a product team member of Netflix stated, Android doesn’t have the “standard steaming-playback features that the Netflix application can use to gain broad penetration across all available Android phones.”

According to Netflix, the list of phones that the Netflix Android App works on are: the HTC Incredible with Android 2.2, the  HTC Nexus One with Android 2.2 & 2.3, the HTC Evo 4G with Android 2.2, the HTC G2 with Android 2.2, and the Samsung Nexus S with Android 2.3.

Netflix is pushing hard to stay on top of things in the wake of Google’s announcement at the I/O Developer conference in San Francisco where the internet giant announced that it is now offering movie rentals via Android Market for $2 per rental. The movies from Google can be played on any Android device as well as the desktop.

It appears that the movie giant is trying to get its foot in the door with Android before Google can take a bite out of potential profits. Only time will tell if Android users will prefer to stick with their favorite Google movies or if they are willing to wait out the Netflix saga.