Washington, D.C. (January 3, 2008) -- NetFlix and LG Electronics are expected to launch a set-top that will deliver NetFlix's movies over the Internet to the TV.

The set-top is also expected to play both Blu-ray and HD DVD discs, according to the Wall Street Journal.

The newspaper did not say whether NetFlix's movies would be available in high-def, but NetFlix rents Blu-ray and HD DVDs. The New York Times reports this morning that the Net TV offering will not include high-def content at launch.


LG's dual-format HDTV player.

WSJ reports that the NetFlix/LG box is expected to be available in the second half of this year. No pricing was revealed, but LG now sells a dual-format HDTV disc player for $999 (although it's cheaper online.)

NetFlix now offers a streaming video service at its web site, which is available at no extra cost above the company's standard monthly fee. WSJ says the same pricing structure will be used for rentals on the LG set-top.

The NetFlix/LG set-top will be another in a growing field of devices aimed at delivering Internet video to the television. Apple introduced its Apple TV device last spring, but sales have lagged to poor picture quality, a lack of high-def content and other issues.

WSJ reports that NetFlix plans to offer its films over the Net via other devices in the next year, including video game consoles.

NetFlix, the DVD rental service, now has roughly seven million subscribers by mail.

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