New XBox 360 games carry Netflix streaming promotion

More Netflix news…

Netflix is promoting trials of its ‘Watch Instantly’ streaming video service with select Xbox 360 games, reports Streaming Media’s Dan Rayburn.

In a joint marketing effort with partner Microsoft, a 48 hour ‘Gold’ pass to XBox Live that includes the Netflix promotion, can be found in the box of US retail copies of the newly released James Bond game, although access to Netflix on XBox 360 won’t be available until later this month when the previously announced Dashboard update is rolled out. Rayburn says this is the “the beginning of what is expected to be some massive marketing efforts by both Netflix and Microsoft for the new service.”

When the two companies first announced a partnership, in which XBox 360 users who are also subscribers to Netflix will able to access the latter’s video-on-demand service through their consoles, I wondered what kick back, if any, Microsoft would be getting. Aside from potentially shifting more XBoxes or signing up more of its users to the paid-for version of XBox Live (needed for Netflix access), would Microsoft get a share of revenue generated from Netflix subscriptions? While I thought that was unlikely, the fact that trials to Netflix are being advertised inside of select XBox 360 titles opens up the real possibility that Microsoft may be receiving a commission for new Netflix sign-ups generated through the joint promotion.

Rayburn also speculates that Netflix will eventually offer a streaming only subscription tariff that doesn’t include DVD rentals – “I would not be surprised to see Netflix offer a package for those users who only want to get movies via the XBOX 360, Roku, TiVo or some other device” – although he does concede that this may not happen for up to two years.

Image credit: Dan Rayburn


last100 is edited by Steve O'Hear. Aside from founding last100, Steve is co-founder and CEO of Beepl and a freelance journalist who has written for numerous publications, including TechCrunch, The Guardian, ZDNet, ReadWriteWeb and Macworld, and also wrote and directed the Silicon Valley documentary, In Search of the Valley. See his full profile and disclosure of his industry affiliations.

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