Earlier this week, software giant Microsoft and media-distibution giant Netflix reached an agreement that will allow X-Box 360 users to live stream content via Netflix.
The agreement will let Netflix subscribers stream 10,000 movies and TV shows to Xbox consoles for viewing on television sets, beginning this fall. Xbox had movies and shows available for download before, but only half as many.
The new deal was announced at this week’s E3 show.
“This generation of consoles will change the face of home entertainment more than any other generation before,†said John Schappert, corporate vice president of Microsoft’s interactive entertainment division.
The new deal is seen as a possible move by Netflix to build up the streaming service to prepare for the day when the convenience and widespread availability of video downloading kills its DVD-by-mail service.
Although Netflix Chief Executive Reed Hastings still believes DVDs will be around for years to come, he has already poured more than $40 million into developing the streaming service.
While the Xbox 360 will have exclusive rights among the video game consoles to the movie streaming service, Netflix is still looking for other ways to reach TV sets. The company already has announced that LG Electronics will include streaming capability on a Blu-ray DVD player that will debut this year. Netflix has promised at least one more major consumer electronics company will unveil a set-top box for Netflix before 2009. This new set-top device will be in addition to a player developed by Netflix-partner Roku Inc.
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