LG, Netflix to launch TVs with instant movie viewing

But the Los Gatos, California-based company, whose trademark red envelopes are shipped to nearly 9 million subscribers, has no immediate plans to tie up with mobile phone companies, Swasey said, despite the growing popularity of smart phones like Apple's iPhone and Research in Motion's BlackBerry.

"There's a limited market for people who want to watch a 2 1/2-hour movie on a 2-inch screen," he said.

LG aims to begin selling the Netflix-enabled LG TVs this spring, said Tim Alessi, LG Electronics USA's director of product development.

These televisions, which use broadband Internet technology, will be available in four models -- LCDs with 42-inch and 47-inch screens, and plasma TVs with 50-inch and 60-inch screens, he said.

Alessi did not disclose a price for these new TVs, but said the company would charge a "small premium" over the typical cost of similar high-definition televisions.

On average, these TV sets cost about $1,000 at a store like Wal-Mart.

"The main point is to add a lot of value for the consumer," he said, adding that they were encouraged by sales of the Netflix-ready set-top boxes and Blu-ray DVD players.

If anything, Alessi was optimistic that the economic recession might help TV sales, especially as people look for cheaper entertainment.

"When economic times are tougher, people tend to stay home more, through 'stay-cations' or cocooning, and in those environments, TVs tend to do better," he said.

(Editing by Maureen Bavdek)