DVD-by-mail service Netflix Inc. will begin delivering movies and other programming directly to televisions later this year through a set-top box made by LG Electronics Inc. that will pipe entertainment over a high-speed Internet connection.
The set-top box is designed to broaden the appeal of a year-old streaming service Netflix provides its 7 million subscribers at no additional charge.
LG Electronics didn’t say how much the set-top box will cost when it hits the market in the summer or early autumn. Similar devices made by Apple Inc. and Vudu Inc. cost 299 U.S. dollars to 399 dollars.
Netflix’s streaming service is the cornerstone of the Los Gatos-based company’s strategy to retain and attract customers as technology makes it easier to rent and buy movies within a few minutes instead of waiting for them to be delivered through the mail.
Although Netflix says its subscribers have watched more than 10 million movies and TV episodes through its “Watch Instantly” option so far, the streaming service has been too constraining for many subscribers.
That’s because all the streaming service’s programming must be watched on a personal computer, unless the viewer knows how to link a high-speed Internet connection into a TV monitor.
The set-top box is meant to serve as a bridge that will enable just about anyone with a high-speed Internet connection to plug in a few wires so they will be able to access Netflix’s Watch Instantly feature on their TVs.
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January 6th, 2008
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