Under the deal, Netflix and Tivo Series3, Tivo HD, and Tivo HD XL subscribers will be able to stream movies and TV episodes instantly from Netflix directly to their TVs.

The two companies said they are initiating a test of the new capability in several thousand US households and expect it to be broadly available in early December. The ability to instantly watch content from Netflix on the TV via Tivo DVRs will be offered at no additional charge to customers who subscribe to both services.

"For Netflix and TiVo subscribers, this collaboration offers a easy way to enhance the enjoyment of watching movies in the comfort of their living rooms," said Netflix co-founder and CEO Reed Hastings. "Subscribers to Netflix and Tivo are avid movie watchers and this combination gives them immediate access to all of the content available through Tivo and the additional choices available to be streamed instantly from Netflix."

The agreement provides Netflix with a new technology partner to instantly stream a growing library of more than 12,000 choices of movies and TV episodes. It also solidifies Tivo’s position for navigation and delivery of the entertainment content to the TV.