LG Blu-ray player to beam Netflix movies from Web

Netflix also has reached a deal to let members watch streamed content on Microsoft Corp (MSFT.O) Xbox 360 game consoles, has struck another set-top box deal with Roku and said it will announce another partnership later this year.

LG and Netflix said LG's Blu-ray player was the first to be bundled with a streaming service. While nonexclusive, LG said it has no plans to offer other streaming services yet.

"This is the first truly convergent product," said Allan Jason, vice president of digital media for LG Electronics USA. "This fall, we'll focus on Netflix. We have a strong story to tell and let the consumers decide," he said.

U.S. consumer awareness about Blu-ray is rising, but adoption of the technology still faces challenges due to price, and perceptions among consumers content with standard DVDs, according to research company NPD Group.

Until February, consumers were torn between two competing standards -- Blu-ray backed by Sony Corp (6758.T) and the rival HD DVD, backed by Toshiba Corp (6502.T), but the standards war ended in February when Toshiba threw in the towel.

Jason said LG expects between 3 million and 4 million Blu-ray players to be sold industrywide for calendar year 2008 and that this number should triple over the next few years. (Reporting by Sue Zeidler; editing by Carol Bishopric)