Netflix unveils Web-to-TV device

By Robert MacMillan

NEW YORK (Reuters) - Netflix, the DVD-by-mail rental service, on Tuesday took another step toward delivering films straight from the Web to TV sets through a new device, boosting its stock as much as 10.9 percent.

The $99.99 (50 pound) device lets Netflix subscribers "stream" movies and television episodes to their TVs with no extra charges or viewing restrictions, the company and its partner, Roku, said in a statement.

Forrester analyst James McQuivey called the move a salvo in the "coming war over the territory known as the consumer living room."

"While it's too early to call winners and losers -- this battle should rage through all of 2009 and into 2010 -- it's clear that training millions of consumers to prefer you sooner rather than later is the best strategy," he said.

Lehman Brothers analyst Douglas Anmuth upgraded Netflix's stock, which rose as high as $34.35, to "overweight" from "equal weight," noting that the company was benefiting from strong subscriber trends.

Anmuth boosted his 2008 profit-per-share forecast for Netflix to $1.26 from $1.24, and raised his price target for the stock to $37 from $31 -- 19 percent above the $30.98 closing price on Monday.

The paperback-sized Roku player requires an Internet connection, and also works with wireless connection systems through Wi-Fi technology. Users can fast-forward and rewind the video streams with a remote control, Netflix said.

More than 10,000 movies and television episodes are available through the player, just one-tenth of the more than 100,000 titles in the traditional Netflix service in which movies are ordered online and shipped by mail.