Netflix, LG Electronics, to Stream Movies from Internet to TV

LOS GATOS/ENGLEWOOD CLIFFS, January 3: The online movie
rental service Netflix is teaming with LG Electronics to develop a set-top box
that will allow consumers to stream movies and other programming from the
Internet to high-definition television (HDTV) sets.

The collaboration is expected to deliver a new online home
entertainment service via technology embedded in an LG networked player that is
scheduled to roll out in the second half of 2008. With the launch of the
networked LG product, Netflix subscribers can watch movies streamed from the
Netflix website on their large-screen home theater HDTVs, in addition to the
current capability to watch movies instantly on their PCs.

This announcement arrives ahead of next week’s 2008
International Consumer Electronics Show (CES), which will emphasize digital
content as well as hardware solutions.

Reed Hastings, Netflix’s founder, chairman and CEO,
commented: “Internet to the TV is a huge opportunity. Netflix explored also
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.”

Added KI Kwon, the president of the consumer electronics
division of LG Electronics USA: “Consumers crave compelling and immediate
content, and the Netflix online streaming movie feature can provide instant
gratification. This alliance underscores LG’s goal of developing smart
technologies that deliver flexibility, convenience and control to consumers.”

—By Irene Lew