MARCH 25, 2008 • Netflix surveys its subscriber base to determine whether or not they would be interested in streaming films to their televisions via Microsoft Entertainment’s Xbox Live service. No details about any agreements with Microsoft and Netflix were disclosed.

Impact: A partnership between Netflix and Xbox Live would make sense. The former is already making films available for online distribution via PC. Expanding distribution to online reservations and playback via the Xbox 360 would open up the service to home theater living rooms, and potentially added revenue. Microsoft would also benefit by adding a proven partner to assist in weaning consumers away from high-definition discs. It’s a type of partnership that could be a win-win for both parties without a major risk or investment.