Netflix + XBOX Live = Social Entertainment

After much speculation, Microsoft and Netflix used the podium at this year’s E3 Media & Business Summit to unveil an exclusive partnership that will bring Netflix’s catalog (currently including more than 10,000 movies and TV episodes) to XBOX Live members later this fall.

“[It’s] perfect combination, the leading online movie rental service and the leading games and entertainment system joining forces to create an all-in-one entertainment experience with content for everyone.”
— Reed Hastings, chairman and CEO of Netflix.

Most interesting, however, is that the service aims to make entertainment social again by integrating with Microsoft’s other announcement: a new, avatar-based dashboard called Live party, which Engadget reports will allow up to 8 friends to simultaneously watch the same film.  That alone may be worth the price of admission (which I already pay separately, anyway), but I’m most intrigued by where this will lead the experience and consumption of entertainment.

In a world where audiences can instantly satisfy the demand created by recommendations (both social and algorithmic) and marketing, the game will change considerably.  It will surely become more personal, more granular, more cost-effective, and more challenging.