Netflix teams with LG Electronics to deliver downloaded movies to TVs

Netflix Inc. is taking the next step in delivering digital movies to appliances other than personal computers.

In cooperation with LG Electronics, Netflix, No. 18 in the Internet Retailer Top 500 Guide, is developing a new device that consumers can hook up to their HDTVs and use the Internet to purchase and download movies.

Netflix and LG still aren’t releasing many marketing or technology details, but the LG networked and web-enabled video box will debut in the second half of the year, says Netflix.

With the new device, subscribers can watch movies streamed from Netflix.com in addition to the current capability to watch movies instantly on their PCs, says Netflix. The company has 90,000 DVD titles in its library and more than 6,000 movies and TV episodes that members can purchase and download to their computers.

"Internet to the TV is a huge opportunity," says Netflix founder, chairman and CEO Reed Hastings. "Netflix explored offering its own Netflix-branded set-top boxes but we concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV."

Netflix sees digital technology as a key factor in winning more market share as the DVD rental market continues to consolidate. The company so far has committed more than $40 million on digital download initiatives, says Hastings.