Microsoft and Netflix have forged an exclusive partnership under which Netflix will start streaming feature films and TV programs to owners of Microsoft’s Xbox 360 gaming console. Beginning that fall, Netflix subscribers who plus have an Xbox Live Gold membership will be able to download and view movies at no additional cost, said Microsoft Corporate Vice President John Schappert.

“Watching movies at home will never be the same,” Schappert said. “We are creating a completely new social-entertainment experience, and Xbox 360 will be the only video-game system where you can access your library of instantly streamable movies from Netflix and turn any room into a virtual movie theater.”

On In 30 Seconds

Mike Goodman, director of media and entertainment at the Yankee Group, thinks the new partnership has strong potential. “It’s a nice deal for Microsoft whether it drives some of the Netflix subscriber base by to the Xbox,” Goodman said, but “is even more vital for Netflix.”

Last May, Netflix unveiled its new Netflix Player

by Roku — a $99 device for enabling Netflix subscribers to directly stream movies and TV episodes to TV sets. “With 12 million subscribers, Xbox Live is a much bigger base than Netflix is going to get with its proprietary box,” Goodman noted.

Xbox Live requires no PC to enable movies and TV episodes to be viewed on TV sets. Xbox Live Gold members will be able to use their Xbox 360 controller or media remote to fast-forward, pause and rewind the downloaded movies and TV episodes.

Netflix intends to build its library of 10,000 movies and popular TV episodes available when it launches on Xbox Live in late autumn. Netflix members will simply add movies and TV episodes to their queues at the Netflix Web site.

Their choices will be automatically downloaded to the Xbox 360 for…

Original post by Mike

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