Netflix and LG Electronics will deliver rental movies and TV series directly to TV sets, sidestepping the well-known red envelopes used by the DVD rental company.

The companies announced Thursday that they will develop a set-top box that will allow users to stream movies and other content from the Internet to HDTV sets.

Netflix, which began to allow users to stream content to their PCs via the Internet last year, said the new system would bypass PCs. The companies said a networked LG player will be released to market by the second half of this year.

"Internet to the TV is a huge opportunity," said Reed Hastings, Netflix's founder, chairman, and CEO, in the announcement. "Netflix explored also offering its own Netflix-branded set-top boxes, but we concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV."

Netflix said the move reflects its larger strategy to offer customers a variety of ways to rent and view movies and television programs. Those who buy the hardware will be able to rent titles cataloged on the Internet. Netflix already offers more than 6,000 titles via the Internet, and the company said it plans to expand its online catalog. The company offers more than 90,000 titles on DVD.

"Consumers crave compelling and immediate content, and the Netflix online streaming movie feature can provide instant gratification," Ki Kwon, president of the consumer electronics division of LG Electronics USA, said in the announcement.

LG Electronics said the partnership will improve its position in the U.S. digital television marketplace.