Some think that discs are already dead, but that's because they're ignoring all the success Netflix is still having. Of course any company with a name like Netflix is obviously forward thinking -- the name isn't Discflix after all -- and on that note Reed Hastings, the CEO, told the WSJ that he expects to see significant declines in packaged media rentals in the next "four to nine years." We think that estimate is as good as any, but can't wait to see how the home media landscape changes between now and then. This is of course why Netflix is actively building it's streaming service which evidently is currently only used by 20 percent of Netflix customers.

Without a doubt, the next big thing in the world of HDTVs is internet capabilities. With Toshiba just shipping its own web-enabled sets this week, LG Electronics is making sure it doesn't fall too far behind by floating a few of its own NetCast models out to the open market. Originally unveiled at CES, these HDTVs are the first from the company with built-in Netflix streaming support, and if you're curious about model numbers, it's the 47-inch 47LH50 LCD HDTV and the 50-inch 50PS80 plasma that are available today. LG tells us that the 42-inch 42LH50 LCD and 60-inch 60PS80 plasma should hit later this summer, but if you're looking to buy now, you'll have to pony up $1,999 for the 47LH50 or 50PS80.

Microsoft is busy announcing a slew of upgrades to Xbox Live, and the biggest news so far is relaunch of the video service, now Zune-branded with 1080p instant-on streaming content in 18 countries. XBL is also now integrated with Facebook -- your Facebook account can be linked to your Gamertag, and games will support Facebook Connect for sharing content online. That's pretty huge -- but if that wasn't enough, you're also getting Twitter and Last.fm in the deal. Want more? Netflix users will now be able to browse the entire catalog instead of simply loading their queue, and Microsoft has also gotten its Party Watch system in order, so you'll be able to heckle videos with your online friends. Last but not least, there's now live TV streaming for UK and Ireland gamers, who'll get Premier League soccer live from Sky. All in all, a solid set of updates for XBL -- but we'll wait and see how that "1080p" video looks before we pronounce Blu-ray dead. PR blurb after the break.

Good news, Vista Media Center PC users will soon find a new option under the TV+Movies tile, as Netflix Watch Instantly streaming access is added directly to the interface. The soul crushingly bad news? A post on The Green Button informs that this does not apply to Media Center Extenders, so cheapskates hoping to get around the Xbox 360's Gold Xbox Live subscription requirement are still going to need those plugins and workarounds. This should go over much better than the InternetTV beta 2, but we're disappointed Microsoft's vision of TV on Your PC (as pointed out on its accompanying blogs, videos and assorted paraphernalia indicates) doesn't allow users to stretch their PC back to the TV at will. 'til that changes, check the gallery and after the break to see what awaits in Media Center once the update rolls out over the next 48 hours.

Update: We checked with Microsoft, and confirmed that, at least for now, this streaming only includes the same content as the browser experience - so no HD. As far as Windows 7 and / or RC1 support? No word yet.

[Via The Green Button]

Gallery: Netflix on Vista Media Center

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The initial reaction to Netflix's Watch Now feature is "wow this is great," but when the reality of the selection kicks in, the appeal fades away. Obviously this isn't news to Netflix and according to the CFO Barry McCarthy it isn't a question of new vs old, but one of good vs bad. That sounds great and all, but the reality is that no matter how bad a movie is, people want to see new movies. Evidently the problem is that access to new movies via a subscription model is already spoken for by cable operators. He goes on further to explain that the cost of winning these contracts away are dependent on Netflix's ability to grow the subscriber base. Now if you're thinking, why not offer the movies via PPV? According to Barry, only the subscription model makes economical sense to Netflix as ad-supported services such as Hulu generate "scant incremental revenue." He even gets a little feisty when he says the "big question" is what are Apple and Amazon going to do when they realize the PPV model they are chasing now is not successful?

We know, lots of you use Netflix. Whether your flavor is streaming, Blu-ray or plain old DVD there's something helpful that's been built via the company's API, including queue managers for iPhone or other mobile device, or websites offering a different level of organization for the Watch Instantly directory like InstantWatcher or Flicks-Now and to organize all those bits and pieces it's launched the App Gallery to let users see them and rate which are the best. Take a sec and check it out, there's only a dozen or so items listed so far but we wouldn't be surprised if there's already one that makes your rental experience a little easier.

[Via The Netflix Blog]

We're not saying it's all good news for Netflix, but even someone with our limited financial knowledge can tell that this quote from CEO Reed Hastings in its Q1 results means things are going pretty well: "We added more net subscribers than in any previous quarter in our history and grew year-over-year GAAP EPS by 76 percent." We don't have to know what GAAP EPS is (earnings reported according to generally accepted accounting principals, and in our Wikipedia-based financial opinion we're concerned this may not truly reflect the earnings of the company until we can evaluate the operating cash flow per share - but this isn't that kind of blog) to recognize the company has a hit on its hands with Watch Instantly, even while its biggest competition is struggling. After busting through 10 million subscribers in February, the company is up to 10,310,000, adding 920,000 to its ranks in Q1 alone. Other news from the earnings call: Streaming only subscriptions are still being "considered" but not planned right now, the company is rolling out a new machine to test discs for scratches and cracks, and the company's biggest threat, just like we discussed on the podcast, is the spread of rental kiosks. You can check the reports for the rest of the details but if, like us, you're more interested in finding out when more HD and surround audio are coming to the streaming service, you'll be disappointed, because they're not in there.

[Image courtesy of TooMuchNick / WireImage, via Hacking Netflix]

We've had a few media streaming queries as of late, but our friend Mike's concern in this area is strictly economical:

"What is the most cost effective way to stream video from sources such as my computer and Hulu to an HDMI device? I would love to also have Netflix and Blu-ray support, but don't know if there is a device out there yet that will do all this cost effectively. I have a PS3 in the living room, but this additional device would be for the bedroom. I'm looking to go as inexpensive as possible. I did consider an Xbox 360 Arcade and that would just eliminate the ability to play Blu-ray, or a Popcorn Hour, eliminating the ability to play Blu-ray or Netflix. Help me! I don't think the device I'm looking for exists!"

We know how it is, you want everything, but you don't want to spend every last dollar getting it. So for all the cheapskates out there, we know who you are, what do you recommend?

Got a burning question that you'd love to toss out for Engadget HD (or its readers) to take a look at? Tired of Google's blank stares when you ask for real-world experiences? Hit us up at ask at engadgethd dawt com and keep an eye on this space -- your inquiry could be next.

The plan is to get Flash from every computer to every television screen, and Adobe's ready to take the next step this week at the National Association of Broadcasters show in Las Vegas. Broadcom, Comcast, STMicroelectronics, NXP Semiconductors, and Sigma Designs join Intel as set-top box makers with chipsets ready to stream widgets and HD video to connected televisions, while content is on the way from Netflix, New York Times, Disney and Atlantic Records. Of course, Yahoo's widgets and Microsoft Silverlight aim to turn up the interactivity and streaming video to TVs and handhelds as well, though Adobe seems content to share with Yahoo! if need be -- Vizio's Connected HDTV demo and Intel's CE 3100 support both -- expect the blades to come out when Flash enabled hardware comes to market in the second half of this year.

[Via Venture Beat]

That's the word, with a small but vocal group of subscribers claiming their discs are repeatedly arriving with small cracks on their outer edges. It's unclear what might be to blame, even with the extra coating to prevent scratches on Blu-ray, they could still be susceptible to automated mail processing machines, manufacturing defects or perhaps a spontaneous game of mail Frisbee. The Mars Box blog experienced this issue back in '07 with the disc pictured above, but in the last few months reports seem to be picking up again. It's really too bad those extra costs can't buy tougher packaging like the cardboard slips GameFly uses, but Netflix told Wired the problem is "infinitesimally small" and changing shipping wouldn't be cost effective. We know plenty of you rent your discs, let us know, have you been afflicted?

[Via Hacking Netflix]

Read - The Mars Box
Read - Wired
Read - AVS Forum

OS X aficionados looking for a media center alternative to streaming Netflix movies through boxee can now look to Plex. The just launched app plugs into Plex's frontend and (with Silverlight) installed) adds a slick front end that compares well to, and may even best those offered by other Instant Watch hardware and apps, though we can't tell from these screens if users can add movies to the queue through it. We're hoping Microsoft picks up a designer or two from this team to upgrade the Xbox 360 frontend, but meanwhile we'll give the latest beta version (0.7.14) of Plex Media Center a shot.

[Via 9to5 Mac]

We've heard whispers of Netflix heading to other, non-Xbox 360 game consoles before, and now adding to the susurrus is a job listing from the company for Engineering Lead - Gaming Platforms. The description calls for someone familiar with the technical hurdles of current-gen consoles for building a small team to "rapidly prototype and iterate on a variety of platforms." Whether or not this means we'll be seeing PlayStation 3 or Wii services in the near (or even distant) future is anyone's guess, but with Microsoft's version so far a streaming success, we wouldn't be surprised if the company took a few steps to increase the probability that 3 billionth delivered flick is digital.

[Via Joystiq]

For all Netflix Watch Instantly queues found lacking (possibly due to excessive swiping?), the company announced the addition of several MTV Networks properties including South Park (but not in HD), Dora the Explorer, True Jackson, VP and Spongebob Squarepants. Keen watchers of the recently added RSS feed have probably seen this content trickling onto the service recently, but that's no reason not to queue up a few seasons of each and kick back.

Because everything needs an App Store or central directory of its own, Netflix is preparing to unveil an App Gallery on its website showing what developers have created to get the most out of its service. No word exactly when the page goes up, but until then we'll highlight the Windows Mobile Manager with integrated streaming trailers and the ability to add movies directly from Rotten Tomatoes as good examples; let us know about any others (like the many iPhone apps) in the comments.

2,000,000,000. That's how many movies Netflix has shipped out since coming on the scene in 1999. Lucky number two billion -- Nick & Norah's Infinite Playlist on Blu-ray) snagged Clay Shannon a complimentary lifetime subscription (guess he's not too concerned about the new, higher Blu-ray rates.) It took the company eight years to cross the one billion milestone, and only two for the next billion. While there's little indication of a slowdown in the two million movies shipped out every day from 58 distribution centers, we wouldn't be surprised if number 3 billion were just as likely to come as a download than anything else.