The holiday period saw UK Internet TV users being given more viewing options than ever before. Zattoo opened its Beta to the British public and the BBC with its controversial iPlayer – now updated to offer a Flash video-based Mac, Windows and Linux compatible streaming version – did the same.

We first reviewed Zattoo, a P2P-based desktop application that offers live streaming of existing ‘over-the-air’ and cable channels, back in July — noting that in comparison to the likes of Joost and Babelgum, both of which attempt to recreate the “lean back” experience of television, Zattoo is more at home being used “in a multi-tasking environment, where users watch television in one window on their computer, while accomplishing other tasks in another such as chatting to friends over IM, surfing the web or writing email”.

Then in closed Beta, the UK version of Zattoo had a channel lineup which notably included all of the BBC’s digital channels: BBC One, Two, Three, Four, along with BBC Parliament, News 24, and the BBC’s two children’s channels.

Not anymore.

I’m putting on my fantasy hat. Imagine: All of the Netflix movies, television shows, and other content streamed into my living room whenever I want. No more waiting for the post office to deliver the next disk. No more red envelopes to deal with.

Netflix, the DVD-by-mail company with more than seven million subscribers, is partnering with Korean manufacturer LG Electronics to stream movies, TV shows, and other content to LG high-definition televisions or set-top boxes by the second half of 2008.

Reed Hastings, Netflix CEO, said he hopes to strike similar deals with other device manufacturers, potentially creating the Netflix movie channel and seriously challenging other companies attempting to capture the digital-entertainment-in-the-living-room opportunity.

“We want to be integrated on every Internet-connected device, game system, high-definition DVD player and dedicated Internet set-top box,” Hastings said. “Eventually, as TVs have wireless connectivity built into them, we’ll integrate right into the television.”