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Online movie rental service Netflix and LG Electronics are partnering to develop a set-top box for people to watch video content from the Internet to high-definition TVs.

The box will be developed by LG and is planned for the second half of 2008. The collaboration will allow Netflix's 7 million members to receive movies and other programming in a variety of ways. Netflix users have been able to watch content on their PCs for a year and they can rent videos from the companies Web site for delivery of DVDs.

"Consumers crave compelling and immediate content, and the Netflix online streaming movie feature can provide instant gratification. This alliance underscores LG's goal of developing smart technologies that deliver flexibility, convenience and control to consumers," said KI Kwon, President of the Consumer Electronics Division of LG Electronics USA, Inc.

LG did not say how much the set-top box will cost when it becomes available in the summer or fall but devices that are similar made by Apple and Vudu cost $299 to $399. Michael Olson, an analyst at Piper Jaffray told USA Today that for the set-top box to do well it needs to cost about $100, with a monthly subscription rate of $12 for rentals of two or three titles at a time.

"This could shape up to be a boxing g match between Apple and Netflix over video streaming content to TVs and PCs," Olson said.