• Reuters, Thursday, February 5, 2009 11:32 AM

Netflix said today that over one million Xbox 360 owners have activated its movie streaming service on Xbox Live in the three months since the partnership was announced. The online DVD company said Xbox Live users have watched 1.5 billion minutes of movies and TV episodes through its Watch Instantly video service, but Netflix did not say how many new subscribers the company has gained from the partnership.

The Netflix-Xbox 360 partnership is seen as an important gauge of demand for the market for movies delivered over the Internet. The news comes at a time when traditional media giants like Disney are reporting declining DVD sales. Last month, Netflix reported stronger-than-expected quarterly earnings, boosted by demand for its streaming video service.

The Netflix application, which Xbox Live users download over the Web, offers Netflix members the ability to instantly view movies on a TV via the Xbox 360 system. Netflix service is priced at around $9 per month. Xbox Live users must pay an annual fee of $50 or more. Netflix is the only company to offer a subscription-based streaming video service.

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