Netflix Canadian Dollar ... (NEO:NFLX)
Historical Stock Chart

From May 2019 to May 2024

As part of its attempt to position itself as a key gateway to digital media for consumers, Microsoft Corp. (MSFT) struck a deal Wednesday that brings Netflix Inc.'s (NFLX) streaming movie service to its Windows Media Center.

Owners of Windows Media Center will be able to watch the 12,000 movies the video rental service Netflix makes available over the Internet through its own portal. Windows Media Center users will be able to browse the Netflix library from within the application, which is given away with Windows Vista, the current version of the Microsoft Windows operating system.

Ben Reed, a Microsoft product manager, declined to say what the business model was for the service, but said that Windows Media Center supports a variety of models including advertising and subscription.

Rob Helm, an analyst with Directions on Microsoft, a Kirkland, Wash.-based firm that monitors Microsoft, said that the deal likely wasn't significant in terms of immediate new revenue, but underscored Microsoft's drive to play a part in the variety of ways consumers access digital content.

"Microsoft wants to be the end-point for digital media in the home," Helm said. "At one point this was through the PC, but now Microsoft is spreading its bets across the PC, the Xbox, Zune and TV set-top boxes," he said, referring to Microsoft's gaming and portable music player devices. "It likes to be on every platform."

Helm said that deals like this could help position Microsoft to play a part at a later date in brokering relationships between advertisers and content providers.

-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; jessica.hodgson@dowjones.com