LOS GATOS, Calif. and ENGLEWOOD CLIFFS, N.J., Jan. 3
/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
computers.
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
http://www.netflix.com.
SOURCE Netflix Inc.
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Related links:
http://www.netflix.com
http://www.LGusa.com
CONTACT:
John I. Taylor of LG Electronics,
+1-847-941-8181, jtaylor@lge.com; or Steve Swasey of Netflix
Inc., +1-408-540-3947, sswasey@netflix.com; or Nathan Friedman
+1-312-397-6009, nathan.friedman@ogilvypr.com, for LG Electronics
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