Netflix announced today that it has struck an agreement with electronics firm LG Electronics to co develop a set-top box which will allow owners of HDTV’s to stream movies and other types of media programming directly from the Internet without having to use a personal computer. This new technology is expected to be completed by the second quarter of 2008. This new product will also be shown at the 2008 International Consumer Electronics Show. KI Kown, the President of the Consumer Electronics Division of LG Electronics, USA, offered the statement that “"Consumers crave compelling and immediate content, and the Netflix online streaming movie feature can provide instant gratification.” KI Kwon also stated that “this alliance underscores LG’s goal of developing smart technologies that deliver flexibility, convenience and control to consumers,"

Netflix stated that working on the development of this new technology is fully in line  with Netflix’s business strategy which, at it’s heart, is to offer what Netflix terms a “hybrid” service in order to give it’s customers a multitude of ways of receiving their favorite content with only paying a flat monthly fee for the privilege. Once the new LG assisted technology comes online later this year those with a Netflix account can view movies that will be made available for streaming from the Netflix homepage right onto their HDTV home theater systems. Netflix subscribers can also watch movies directly on their PCs by using this new service.

The Chairman, CEO, and Founder of Netflix Reed Hastings, stated that “Internet to the TV is a huge opportunity," and that Netflix had considered developing it’s own set-top box technology before they “concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV." The statement regarding this new business deal increases the reputation LG Electronic’s enjoys as one of the most well recognized members of the digital television industry while at the same time furthering Netflix’s own plan of increasing electronic availability of media in addition to it’s by-mail service.