Netflix Inquiring About Xbox LIVE

With the recent demise of HD-DVD we’ve been wondering where Microsoft will turn for video content on the Xbox 360. The most likely candidate will be to focus on the Marketplace and digital distribution. Michael Bay last year accused Microsoft of throwing their considerable weight behind HD-DVD in order to facilitate a format war that would help kill off physical media. I’m not sure how true that is, but what is clear is Microsoft needs something.

Speaking with Reuters today, Netflix spokesman Steve Swasey said the company is exploring as many opportunities to get their movies onto televisions as they can. One such endeavor is partnering with Microsoft to bring Netflix titles to Xbox LIVE. Netflix has begun to survey its customers to gauge the interest level. At this time there is no deal or talks occurring between Netflix and Microsoft.

There’s no word on how the service would work with Marketplace. LG and Netflix have partnered recently to bring a set top box that streams movies to high def televisions. Microsoft generally hasn’t been streaming content through LIVE. The benefit of watching what you want at that moment is powerful. If we continue having to download movies for a few hours, then a Netflix deal only serves to open up more studios and films to Microsoft.