Breaking: Netflix & Microsoft Partner to Bring Watch Instantly to The Xbox 360
Engadget reports that at E3 Microsoft and Netflix announced that the long-rumored partnership will bring Netflix's Watch Instantly to the Xbox 360.
Microsoft says the 360 will be the only game system that allows Netflix access for no additional cost, and what's more, streaming movies can be shared with your Live party, allowing you to watch content together. Users will have instant access to their Netflix instant access queues, but it's not clear what resolution the content will be streamed at -- we'd guess it's roughly the same DVD-quality res as Roku's Netflix streamer for now, but anything could change when the service launches in the fall witht the new dashboard.
It's a perfect partnership: Microsoft can sell or rent the new releases, and Netflix adds value with 10,000+ movie and TV shows. Oh, yeah -- the Xbox 360 also plays games. The only thing missing is a Blu-ray player...
Why Microsoft's Xbox 360 over Sony's PS3? It could be that Reed Hastings is a member of Microsoft's board of directors, or that Sony might want to compete with Netflix (Sony was a founder of Movielink, which is now owned by Blockbuster).
With Xbox 360 prices as low as $299, would you buy an Xbox or Roku's Netflix Player?
Thanks to Erie, Doron & Steve for sending this in.

You also have to take in account updating your computer to have Windows Media Center, which may include updating to vista or a high end XP version, having a router and a reciver on the Xbox side...
Posted by: Guy | July 14, 2008 at 03:04 PM
How much is an xbox gold membership?
Posted by: just curious | July 14, 2008 at 03:04 PM
$59.99/12 months
Posted by: Jeff | July 14, 2008 at 03:11 PM
You don't need Media Center it's not an extender plugin.
Posted by: | July 14, 2008 at 03:17 PM
Well, the only problem I can see with this, is the Xbox 360 is the loudest entertainment component available on the market, in terms of fan noise. I don't know how it would react to having to stream content, if that would put the fans in motion or not.
I've already bought a Roku player, and already own a 360, so this will just be an added option for me. I will obviously watch on the Roku player though because it has HDMI support for when Netflix is ready to go HD, and a lot of Xbox 360's (I know, probably not yours) didn't come with HDMI. Plus the aforementioned fan noise that the Roku player does not have.
It will be interesting to see if the 360 uses a different RW and Fast Forward interface than the Roku box though (Maybe the same as the one they have now), because both the Roku one, and the Microsoft video version are both not that great.
Also, you say "Why Microsoft 360 over PS3?". I may be wrong, but I haven't heard that the Microsoft deal is exclusive. Sony is having their press conference in the next few days for E3, and they will be talking about THEIR video service as well, so Netflix could have multiple partners. There's still a chance.
Posted by: MCW | July 14, 2008 at 03:19 PM
The day MS releases a blu-ray player for the XBOX 360 is the day I buy a 360. Until then, their console is like the Olympic champion of HTPC's with a cast around both ankles. Cut the casts, MS. Cut the casts.
Posted by: Franklin | July 14, 2008 at 03:24 PM
Uhh.... Reed Hastings in on the Chairmans board for Microsoft, That could be why 360 over ps3, he was a shoe in for the deal.
Posted by: RP | July 14, 2008 at 03:33 PM
to those of you who dont know, you dont need an Xbox Live subscription for this... all market place items are available to everyone with a 360 and internet connection... xbox subscription is for gaming...
also, its smart to choose the 360 over ps3 because xbox live is a power house... if you look at Rock Band alone, it sold 80% of its revenue through the 360 as compared to both the wii and the ps3... More people rent movies, TV, and other things directly thru the 360 rather than the PS3...
Posted by: andyg8180 | July 14, 2008 at 03:36 PM
What I want to know is how soon is this going to go in motion?
Posted by: mojaam | July 14, 2008 at 03:55 PM
The Netflix web site says that you need an Xbox Live Gold (i.e. $50/year) account. See http://www.netflix.com/NetflixReadyDevices?tb=details&lnkctr=nfrddetails3
Posted by: timur | July 14, 2008 at 03:57 PM
Ha, I didn't even see that Gold subscription was required.
Who is going to pay $50 a year for the Instant Watch selection?! Just buy a Roku player and be done with it.
"also, its smart to choose the 360 over ps3 because xbox live is a power house...More people rent movies, TV, and other things directly thru the 360 rather than the PS3..."
Liar. Xbox Live costs $50 a year, PS3's Playstation Network online service is free. Sony have not debuted their Movie/TV Download service yet, so OF COURSE MORE PEOPLE RENT MOVIES ON 360 YOU MORON.
It's obvious when a fanboy comes around.
Also, yeah, PS3 has a Blu-ray player. Xbox 360 had an HD-DVD Player... no, don't worry, I haven't heard of HD-DVD either.
Posted by: MCW | July 14, 2008 at 04:05 PM
I can understand most of the complaints about the details, but I've been hoping for a deal like this for some time. I'm firmly within their target demo: I already own a 360 and have Live Gold, and I just canceled my Netflix account because I wasn't using it enough while studying for the bar exam. I'll be renewing as soon as this deal is operational.
The full press release doesn't provide any timeline. When should we expect to see this?
Posted by: machinegunn | July 14, 2008 at 04:43 PM
This is absolutely terrific news. Another major partner is revealed! (and one many of us had suspected)
Posted by: hueristix | July 14, 2008 at 04:47 PM
I have been waiting for this since I read that Hastings was on the Microsoft board. The Xbox 360 doesn't need a Blu-ray player, just like the Roku it has High Definition capabilities. I don't think Netflix added HDMI and component video if they didn't have plans to use it at some point. This new feature seems to be meant for current and future 360 owners who will be gaming online. Those that don't plan on gaming can buy the Roku.
Posted by: DeJuan | July 14, 2008 at 05:51 PM
MCW, the Netflix press release said "Xbox 360 will be the only game system that lets users instantly watch movies and TV episodes streamed from Netflix". That sounds pretty exclusive to me.
Posted by: elving | July 14, 2008 at 06:01 PM
I don't know what people are complaining about. It is just another option to use Netflix's watch instantly functionality. For people who haven't bought a Roku, already have Xbox Live Gold and have Netflix this is awesome. For those that have both an xbox and roku you can choose which you use. For those that have neither, choose which one works for you. So, people stop complaining and embrace that by offering all these choices Netflix is definitely planning big things for Watch Instantly.
Posted by: Tim | July 14, 2008 at 06:36 PM
I'm not sure why people are complaining either. I have an Xbox 360 Elite (HDMI), so I do have HD capability. I'm also a Netflix customer & Xbox Live Gold member. Just because this isn't for some of you, just purchase the Roku player. There are a lot of people over at the Xbox forums that are happy and this will benefit millions of people. I don't hear much about Blu-ray either considering HD DVD is gone. Digital delivery is where it's at and once Netflix goes HD... will the Xbox need a Blu-ray addon? Probably not.
Posted by: Jason Hansen | July 14, 2008 at 08:33 PM
Finally! Microsoft finally wised up and added access to Netflix Watch Now from 360- now all we need is official support for Watch Now in Media Center and Extender. I think this is a big addition to the Xbox' already impressive multimedia cababilities.
Posted by: RocketTech | July 14, 2008 at 10:58 PM
This is great news for us Netflix/XBox users. What is also great, yet not even mentioned is the fact that you can get on Live with your friends who also have a Netflix membership and watch movies together! This is an awesome feature for families and friends who don't have the convenience of going to the same house and watching a movie together. I feel the XBox long distance cupid arrows being used more frequently now.
Posted by: Clifton H | July 15, 2008 at 12:03 AM
Stockholders beware !
What Nflx hasn't made public is the absolute lack of interest in the Roku box ... so what makes you think Nflx customers are going to flock to their 360s to see the same crappy old movies and tired old TV shows ?
Posted by: Nflx Newzie | July 15, 2008 at 01:00 AM
I had been considering the Roku box, but I had not been able to justify that I would use it enough on the TV to make a difference. I have also been wanting an XBox 360. Thus, it would be excellent if I could combine the two purchases though I hate that I will be shanghaied into paying for the Gold subscription.
Digital delivery is where it's at and once Netflix goes HD... will the Xbox need a Blu-ray addon? Probably not.
Yeah, if you only like old and/or crappy movies. I mean, don't get me wrong, I have watched a good bit of stuff on Watch Instantly, but from the perspective of movies, almost everything that is worth watching is at least 5 years old; and I cannot think of any recent blockbusters that are on it (feel free to correct me). I know that a lot of people are crying out that digital delivery is where it is at, but even if Netflix gets HD on Watch Instantly, it will not replace Blu-Ray unless Netflix can get a hold on new releases. This is not to say that I don't enjoy watch instantly, I just don't see it becoming ubiquitous until this issue is resolved. Also, I know new TV programs are available through it.
I do wonder though that once HD is on Watch Instantly if I could get away with Watch Instantly + HD Movies on Demand from cable in an effort to avoid Blu-Ray. Of course, I think DVD quality is "good enough" on my TV so I would probably just Netflix the DVD and just not worry about HD for the time being.
Posted by: Brandon | July 15, 2008 at 09:28 AM
re: "Who is going to pay $50 a year for the Instant Watch selection?! Just buy a Roku player and be done with it."
Even if you have to pay $50 a year for it (which seems unclear), that's still less than half what you have to pay Netflix ($8.99 a month).
Or do you still have to have a netflix subscription to watch the instant movies on an xbox?
Posted by: anotherscott | July 15, 2008 at 10:00 AM
Boo Xbox! Yay Wii!
Posted by: Donuts | July 15, 2008 at 01:00 PM
This is great news, but not a potential replacement for Blu-Ray. There's no way your internet connection can stream anywhere near the amount of data on a BR disc. Even if they upgrade to "HD" it will be super-compressed HD (think blotchy areas in place of crisp colors.) If that quality is good enough for you, that's great, but not everyone will like it. Furthermore, if broadband providers start charging by usage, streaming HD content will start becoming way more expensive than receiving it by mail.
Posted by: CopaceticOpus | July 15, 2008 at 03:12 PM
This is most terrific news for me, and avid 360 and Live player. I am very much looking forward to this.
Posted by: Leo | July 15, 2008 at 05:26 PM