Netflix (NFLX), the largest online DVD rental service, offering flat rate rental-by-mail and online streaming to customers in the United States, according to Bloomberg, will deliver movies over the Internet to owners of Microsoft Corp.’s Xbox 360 video-game console. The agreement between both companies is expected to be announced today.
The accord, set to be unveiled at the E3 video-game conference in Los Angeles, will give Netflix, the largest U.S. mail-order movie service, a new outlet for film rentals to 12 million Xbox users, said the person, who declined to be identified since the announcement isn’t yet public.
Netflix has offered movies on computers since 2006. In May, the Los Gatos, California-based company began streaming films to TVs equipped with a $99 converter box from Roku Inc. Netflix hopes that delivering movies to TVs on-demand will help it grow to 20 million users, Chief Executive Officer Reed Hastings told analysts on May 27. [Via Bloomberg]
Headquartered in Los Gatos, California – Netflix has approximately 8.2 million subscribers and it has amassed a collection of 100,000 titles. Netflix and Microsoft declined to comment on the agreement.
Netlix shares are currently trading up $0.54 @$27.75.
Update: Confirmed .. A growing library of more than 10,000 movies and TV episodes will be available from Netflix when it launches on Xbox LIVE in late fall, with more choices added over time. Through this agreement, along with the existing Xbox LIVE Marketplace Video Store, Xbox 360 will be home to more movies and TV shows on demand than any other device connected to the TV.