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Netflix Inc. announced its new partnership with Samsung
Electronics Co. meant to offer consumers movies on their television sets
directly from the Internet. Samsung’s devices will also be used to play movies
encrypted on the high-definition Blu-ray format.
The electronics maker’s products are already available on
the market and for now, users will have to connect to the Internet to download
an application which will enable the compatibility with Netflix’s service. The
upgrade can be downloaded from Samsung’s official Web site, by accessing the
following address http://www.samsung.com/bluraysupport.
The company announced that future versions will present a built-in access
feature. Samsung agreed to enable the service on its $400 BD-P2500 and BD-P2550
Blu-ray disc players.
"In its new form, Samsung Blu-ray players become the
ultimate content delivery box, combining on-demand access to movies and
jaw-dropping Full HD viewing," said Reid Sullivan, Vice President of
Marketing, Audio/Video & Imaging at Samsung Electronics America.
"Samsung presents a new value proposition for Blu-ray players by
positioning it as a portal to a world of engaging digital content, be it
Blu-ray discs, movies from Netflix or other online content."
Netflix managed to make a name for itself by pioneering DVD
rentals by mail, a service extremely appreciated by all of its users. The
company is looking expand its area of activity and promote its new service,
named Watch Instantly, which offers users the possibility to get full HD movies
over the Internet. At the moment, the online service’s archives include only about
12,000 titles, which is considerably small compared to its collection of
hundreds of thousands of movies.
The terms of the deal were not disclosed and the other
Samsung products that will integrate Netflix’s services haven’t been named for
now. Many analysts believe that future television sets will have such an
Internet connection feature in their standard package, facilitating the access
to these Web-based entertainment services. Considering the fact that Samsung is
one of the major television makers, the long-term plan is clear, as the company
is looking to get a head start in this new segment that has the potential to
become extremely popular.
"Samsung has been at the forefront of innovation in
consumer electronics and has established a market leadership position in
Blu-ray and digital television," said Netflix Co-Founder and Chief
Executive Officer Reed Hastings. "We're excited about the upgraded Blu-ray
disc players. Moreover, we look forward to working with Samsung in the years to
come to deliver a variety of outstanding products on which consumers can watch
movies delivered over the Internet from Netflix."
Netflix already signed similar deals with other companies
and their products, which offer its Internet video service on Microsoft Corp.’s
Xbox 360 videogame console and startup Roku Inc.’s set-top box.
The online rental business becomes more popular with each
passing day, as customers find it easier to select their movies from the
comfort of their own home and the service is also cheaper. Once the movie
archive will be enlarged, the company expects a significant boost in it
subscriber list.
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