LG Electronics and Netflix Announce Plan to Stream Movies From the Internet to the TV


Jan 03, 2008, 00:00 ET from Netflix Inc.

/PRNewswire-FirstCall/ -- Netflix Inc. (Nasdaq:   NFLX), the world's largest
 online movie rental service, and LG Electronics, a global consumer
 electronics leader, today announced they are joining forces to develop a
 set-top box for consumers to stream movies and other programming from the
 Internet to HDTVs -- bypassing the need to use a personal computer.
     The collaboration is expected to deliver a compelling new online home
 entertainment service via technology embedded in an LG networked player
 planned for the second half of 2008. Today's announcement sets the stage
 for next week's 2008 International Consumer Electronics Show (CES(R)),
 which will emphasize digital content as well as hardware solutions.
     "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," said KI Kwon,
 President of the Consumer Electronics Division of LG Electronics USA, Inc.
     The technology collaboration supports the Netflix core strategy of
 offering a multi-dimensional, or "hybrid," service that gives its more than
 7 million members a variety of ways to receive movies and TV series for
 one, low monthly fee.
     With the availability of the networked LG product planned for later
 this year, Netflix subscribers can watch movies streamed from the Netflix
 Web site on their large-screen home theater HDTVs, in addition to the
 current capability to watch movies instantly on their PCs.
     On top of its rich catalog of more than 90,000 titles on DVD delivered
 fast through the mail, a growing selection of more than 6,000 familiar
 movies and TV episodes delivered instantly over the Internet to Netflix
 members' personal computers or TVs will even more strongly position Netflix
 in online movie rentals, which it pioneered in 1997.
     "Internet to the TV is a huge opportunity," said Netflix Founder,
 Chairman and CEO Reed Hastings. "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."
     In all, today's announcement enhances LG Electronics' position as a
 top-tier player in the U.S. digital television marketplace and advances the
 Netflix goal of making electronic delivery -- including future high
 definition content -- a meaningful addition to its existing DVD delivery
 platform and a valued enhancement to the Netflix subscriber experience.
 Netflix took its first step in that direction in 2007 when it enabled
 members to instantly watch movies and TV series on their personal
     Forward Looking Statements
     This press release contains certain forward-looking statements within
 the meaning of the federal securities laws, including statements regarding
 the development of a set-top box for delivery of content over the Internet
 to television sets, the delivery of a compelling online home entertainment
 service, Netflix's strategy and positioning in online delivery of content,
 and the future of Internet to the television. These statements are subject
 to risks and uncertainties that could cause actual results and events to
 differ, including, without limitation; the risk that the development of the
 set-top box or its associated online delivery service may not meet
 technical requirements, consumer expectations, or otherwise be implemented
 by the parties; that certain studios will not grant either of the parties
 necessary rights or otherwise impose limitations on such rights that might
 impede implementation or hamper consumer adoption, Netflix's ability to
 create other partnership opportunities for the delivery of digital content
 to the television, and possible technological or content licensing
 impediments. Other risks and uncertainties that could impact Netflix
 performance are included in Netflix's Annual Report on Form 10-K filed with
 the Securities and Exchange Commission on February 28, 2007. Netflix
 undertakes no obligation to update forward-looking statements to reflect
 events or circumstances occurring after the date of this press release.
     About LG Electronics
     LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology
 innovator in consumer electronics, mobile communications and home
 appliances, employing more than 82,000 people working in over 110
 operations, including 81 subsidiaries around the world. LG Electronics USA,
 based in Englewood Cliffs, N.J., is LG's North American subsidiary. In the
 United States, LG Electronics sells a wide range of consumer electronics
 (digital display and digital media) products, mobile phones and digital
 appliances under LG's "Life's Good" marketing theme. For more information,
 please visit http://www.LGusa.com.
     About Netflix Inc.
     Netflix Inc. (Nasdaq:   NFLX) is the world's largest online movie rental
 service, providing more than seven million subscribers access to over
 90,000 DVD titles plus a growing library of over 6,000 titles that can be
 watched instantly on their PCs. The company offers nine subscription plans,
 starting at only $4.99 per month. There are no due dates and no late fees
 -- ever. All Netflix plans include both DVDs delivered to subscribers'
 homes and, for no additional fee, movies and TV series that can be started
 in as little 30 seconds on subscribers' PCs. DVDs are delivered free to
 members by first class mail, with a postage paid return envelope, from over
 100 U.S. shipping points. Nearly 95 percent of Netflix subscribers live in
 areas that can be reached with generally one business day delivery. Netflix
 offers personalized movie recommendations to its members and has more than
 one billion movie ratings. For more information, visit

SOURCE Netflix Inc.