This story on MSNBC.com reports on some interesting rumors that Microsoft may partner up with the world's largest online DVD rental service, Netflix, to deliver movies over Xbox Live. There are speculations that Microsoft may make the announcement during the ongoing Game Developers' Conference in San Francisco.
Netflix initially showed interest in delivering content through internet-connected HD-DVD (not anymore) and Blu-ray machines, such as the Xbox 360 or PS3 back in October. Recently though, just last week, Netflix released some surveys with questions regarding Netflix used in Xbox Live.
The partnership would easily increase Microsoft's library of movies. While Microsoft's current catalog is only around 300, Netflix's muscular catalog is over 90,000, with 7,000 being instantly available through Netflix's Watch Instantly service.
Netflix hit the news recently when they announced the dropping of HD-DVD support and will only support the release of Blu-ray. Now that HD-DVD is officially dead with Toshiba dropping out, Netflix is all ready for growth.
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If this happens, I hope for something like Netflix members being able to use the Watch Now movies on the 360. I'd hate it if it was just a case of Netflix given Microsoft more rental titles when I already subscribe to Netflix.