Looks like Netflix customers are going to have another avenue for enjoying movie content this fall:

An exciting new home theater experience is coming to living rooms this holiday season. At E3, Microsoft and Netflix, the world's largest online movie rental service, today unveiled an exclusive partnership to offer the ability to instantly stream movies and TV episodes from Netflix to your television via Xbox 360.

Xbox 360 will be the only game system that lets you instantly watch movies and TV episodes streamed from Netflix. This movie-watching innovation will be available to Xbox LIVE Gold members who are also Netflix subscribers, and will let those users enjoy streaming movies from Netflix on Xbox LIVE at no additional cost.

A growing library of more than 10,000 movies and TV episodes will be available from Netflix when it launches on Xbox LIVE in late fall, with more choices added over time. Through this agreement, along with the existing Video Store, Xbox 360 will be home to more movies and TV shows on demand than any other device connected to the TV. Xbox LIVE quickly and easily connects you and your friends to the entertainment you want—with no PC required for viewing.

Interact, Play, and Enjoy
Netflix on Xbox 360 is an important component of the new Xbox experience, a new generation of games and entertainment experiences that will be available on Xbox 360 this fall. The new Xbox experience represents the first time in history that a mass-market consumer electronics device has been re-invented through free software, giving people more fun and intuitive ways to interact, play, and enjoy entertainment content.

"Watching movies at home will never be the same. Netflix on Xbox 360 is an entertainment first, and we are bringing friends together with the best in entertainment content like no other device in the living room, " said John Schappert, corporate vice president of Interactive Entertainment LIVE, Software and Services Business at Microsoft . "We are creating a completely new social entertainment experience, and Xbox 360 will be the only video game system where you can access your library of instantly streamable movies from Netflix and turn any room into a virtual movie theater."

Highly Personalized Experience
From the Netflix Web site, simply add movies and TV episodes to your individual instant Queues. Those choices will be automatically displayed on the TV screen via Xbox 360 and available to watch instantly. Once selected, movies will begin playing in 30 seconds or less. In addition to instantly streaming movies to the TV, Gold members can fast-forward, pause, and rewind—all using either the Xbox 360 Controller or Media Remote. In all, the user interface creates a highly personalized experience that puts viewers in control.

"Netflix and Xbox 360 are a perfect combination, the leading online movie rental service and the leading games and entertainment system joining forces to create an all-in-one entertainment experience with content for everyone," said Reed Hastings, chairman and CEO of Netflix. "For Netflix, it represents an important step forward in making instantly streaming movies on the TV more broadly available to our members."

The library of movies and TV episodes that will be available for instant streaming from Netflix via Xbox 360 includes scores of Academy Award winners and nominees, episodes from a number of popular, currently running and classic TV shows, and 24 of the movies rated by the American Film Institute as the greatest ever.

Very interesting.