They’ll be offering five other series in a similar manner (the only other title known so far is the woefully-neglected Gintama). Here are the brass tacks: those who pay for a subscription get access to the episodes an hour after they air in Japan. Those who want to watch for free will have to wait a week. It’s all streaming; so far there’s been no mention of the possibility of downloadable episodes.
So how about Naruto’s NA licensor, VIZ? No fears, they’re in the loop– they’ll be streaming the episodes free within a week of their airing. Starting on January 2nd they’ll also be airing the first eight episodes of Shippuuden and add eight more episodes every Friday until it’s all online, so you can catch up, I guess. (Let’s face it, getting the 220 episodes of the first series up would be pretty damn tough.)
But wait, there’s more! CrunchyRoll has finally announced that it will cease allowing user-uploaded videos in an attempt to ensure that everything on the site is legal. Considering they now have TV Tokyo, Gonzo, and Toei as content providers direct from Japan– not to mention a handful of others in Japan and elsewhere –I think they’ll do okay.