Microsoft and Netflix Partner to Instantly Stream Movies and TV Episodes to the TV via Xbox LIVE

 July 14, 2008

Microsoft and Netflix Unveil
Partnership to Instantly Stream Movies and TV Episodes to the TV via Xbox

Exclusive agreement creates
game-changing home entertainment experience; more than 10,000 movies and TV
episodes will be available to watch instantly at no additional cost to
paying subscribers.

An exciting new home theater
experience is coming to living rooms this holiday season. At the E3 Media
and Business Summit, Microsoft Corp. and Netflix, Inc. today unveiled an
exclusive partnership to offer consumers the ability to instantly stream
movies and TV episodes from Netflix to the television via the Xbox 360 video
game and entertainment system. Xbox 360 will be the only game system that
lets users instantly watch movies and TV episodes streamed from Netflix.
This movie watching innovation will be available to Xbox LIVE Gold members
who are also Netflix subscribers and will let those users enjoy streaming
movies from Netflix on Xbox LIVE at no additional cost.

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. Xbox LIVE quickly and easily connects
consumers and their friends to the entertainment they want — with no PC
required for viewing.

Netflix on Xbox 360 is an
important component of the new Xbox experience, a new generation of games
and entertainment experiences that will be available on Xbox 360 consoles
this fall. The new Xbox experience, also announced today at the E3 Media and
Business Summit, represents the first time in history that a mass-market
consumer electronics device has been re-invented through free software,
giving people more fun and intuitive ways to interact, play and enjoy
entertainment content.

“Watching movies at home will
never be the same. Netflix on Xbox 360 is an entertainment first, and we are
bringing friends together with the best in entertainment content like no
other device in the living room,” said John Schappert, corporate vice
president of Interactive Entertainment LIVE, Software and Services Business
at Microsoft. “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.”

From the Netflix Web site,
members simply add movies and TV episodes to their individual instant
Queues. Those choices will be automatically displayed on the TV screen via
Xbox 360 and available to watch instantly. Once selected, movies will begin
playing in as little as 30 seconds. In addition to instantly streaming
movies to the TV, Xbox LIVE Gold members can fast-forward, pause and rewind,
all using either their Xbox 360 Controller or Media Remote. In all, the user
interface creates a highly personalized experience that puts viewers in

“Netflix and Xbox 360 are a
perfect combination, the leading online movie rental service and the leading
games and entertainment system joining forces to create an all-in-one
entertainment experience with content for everyone,” said Reed Hastings,
chairman and CEO of Netflix. “For Netflix, it represents an important step
forward in making instantly streaming movies on the TV more broadly
available to our members.”

The library of movies and TV
episodes that will be available for instant streaming from Netflix via Xbox
360 includes scores of Academy Award winners and nominees, episodes from a
number of popular, currently running and classic TV shows, and 24 of the
movies rated by the American Film Institute as the greatest ever.

Today, Xbox LIVE members can
also download movies and purchase TV shows from the industry-leading Xbox
LIVE Marketplace Video Store, currently packed with content from more than
45 networks and studios. The Xbox LIVE Marketplace Video Store offers more
than twice the high-definition content than the nearest cable provider and
more than 6,000 hours of TV shows and movies.


For All E3
2008 News and Announcements