Netflix signs distribution deal with Microsoft
Written by Ryan Lawler
Monday, July 14. 2008 at 05:45 PM EDT 3 comments
With the DVD rental business expected to decline, Netflix Inc. is finding new ways to remain relevant as a digital distribution channel. By announcing a partnership with Microsoft Corp. (Nasdaq: MSFT), the company now has a whole new vehicle for delivering video to customer living rooms.
The companies announced today that they had entered a digital distribution agreement whereby Netflix subscribers will be able to stream movies and TV shows from Netflix on the Xbox 360 gaming console.
The deal expands on Netflix's digital streaming video service and will open up a whole new path into customer living rooms.
In May, the video rental site announced it would stream videos over a digital set-top box produced by Roku, which could be purchased for $99. But while Roku users will have to buy a new set-top box, with the Microsoft partnership, Netflix will have an installed base to stream movies.
In addition to the Netflix streaming news, Microsoft said it would be adding downloadable content from NBC Universal to its Xbox Live marketplace. With the deal, NBC joins ABC Inc. and Walt Disney Co. , which already offer content through the online marketplace.