Microsoft and Netflix have a hit with their Xbox partnership. Since the service debuted November 19, 2008, one million Xbox Live Gold members have used the Netflix streaming application to watch 1.5 billion minutes of video.

Netflix, which began as a service to rent DVDs by mail, started offering its "Watch Instantly" streaming service two years ago via PCs. In addition to the Xbox, it now makes its streaming service available through various devices, such as Roku set-top boxes and LG Electronics televisions. Although Netflix offers a library of more than 100,000 videos, its streaming service features only 12,000 of those movie and TV titles.

Users pay an annual fee of $50 to Microsoft for an Xbox Live Gold membership and a monthly fee of about $9 to Netflix for a rental membership. By downloading an application to their Xbox, they can then instantly view content from Netflix on a TV via the Xbox 360 system. The combined membership plan provides users with an unlimited monthly streaming subscription.

Microsoft also offers a video store via the Xbox Live Marketplace that houses more than 17,000 pieces of standard and high-definition video. Microsoft's video store offers TV show downloads and movie rentals to all Xbox Live members in the U.S., U.K., Canada, Ireland, France, and Germany.

"Adding Netflix to our ever-growing library of 30,000 movies and TV shows makes Xbox 360 the best value in home entertainment," says John Schappert, corporate vice president Live, Software and Services Business at Microsoft.

That hasn't helped Xbox sales much though. The only time the company's gaming system sales beat major competitor, the Nintendo Wii, in monthly sales has been due to the release of a much anticipated game title, such as Halo 3 in October 2007. The Wii outsold both the Xbox and Sony Play Station 3 in 2008. While Microsoft has added options like Netflix to stay competitive, Sony has updated its firmware, adding features such as Skype, the VoIP provider, to its box.

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The references for this article include: Netflix on Xbox 360 races to quick success, Wolfgang Gruener, February 5, 2009, TG Daily; Netflix says 1 million Xbox members use movie service, Sue Zeidler, February 5, 2009, Reuters; 1 Million XBL Members Using Netflix With Xbox 360, Eric Caoili, February 5, 2009, Gamasutra; Thanks to 'Halo,' Xbox 360 beats Wii sales for month , Todd Bishop, October 18, 2007, SeattlePI.com; and Wii Sales Expected To Pass PS3, Xbox My 2008, Isabelle Duerme, February 19, 2008, All Headline News.

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This post blogged by Carlie Lawson. She is a hazards consultant, freelance writer, and weather nerd living in Norman, OK, also known as the weather capital of the United States.