On Monday, Netflix announced that they will soon be partnering with three companies that will help bring movies from the web to your TV. Netflix refused to comment on the names of these companies but did state the deals were similar to one that was made with LG awhile back. CEO Reed Hastings acknowledged that two of the companies were well-known to the public and that the full disclosure would take place sometime around the 4th quarter of the year.

The hottest rumors have all centered around Microsoft and their Xbox 360 console. Earlier in the year, Netflix provided a survey to current subscribers that asked how they’d feel about being able to stream movies through the video game console. There was rampant praise throughout the tech blogosphere and we’d be surprised if Microsoft is not one of the companies involved. The other may be Sony and their Playstation 3 console.

The video game consoles provide the easiest way into the households of Americans. Both Sony and Microsoft have sold millions of systems over the past few years. These systems are already setup online and will provide an easy way for Netflix customers to login and access movies without having to buy another piece of overpriced hardware for their entertainment center. The transition would seemingly be free and would more or less amount to having to download software via the video game maker’s respective online dashboard.

Most importantly, this move signals a dramatic shift on the part of Netflix away from physical DVDs and into a digital front. They understand the DVD rental by mail is a limited business model that will need to adapt to a userbase that is seeing faster internet connections and easier access to movies at the touch of a finger. Their launch of streaming movies last year was succesful and has allowed them to stay one step ahead of their rival Blockbuster. This move will put added pressure on Blockbuster to keep pace and not be left in the dust as they were with their brick and mortar stores.

Source: Gizmodo