Netflix' movie streaming is fine if you're OK with watching movies on your computer, but LG's planning on integrating hardware into their TVs to allow you to watch those same films in your living room. The NYT says LG and Netflix have reached a deal to be announced at CES to allow integration via its HD DVD/Blu-ray combo players as well as a TV line with Wi-Fi that will stream stuff straight from the internet.
There aren't any further details about pricing on these units (the combo BD/HD unit is $799 now), or pricing of the Netflix service (they're still toying around with unlimited viewing). However, LG doesn't have an exclusive deal, and Netflix says they want their streaming movies on every single set-top-box imaginable—this includes gaming systems, DVRs, and more. Check in when we have more at the LG press conference. [NYT via Hacking Netflix]
Update: The AP says that LG and Netflix are also coordinating on a pure standalone set-top-box as well, which means that you may be able to buy one sans Blu-ray/HD DVD/Television on board. No pricing on this yet. [AJC]