Analyst: Xbox Live a 'Gold Mine' for Netflix

Wedbush Morgan analyst Michael Pachter is predicting that the partnership between Microsoft and Netflix will lead to big subscriptions rates for the rental service amongst Xbox Live users.

Xbox Live gained the Netflix streaming video service on November 19. The service offers 12,000 streaming standard definition and several hundred HD videos to Xbox Live gold and Netflix subscribers.

Pacther estimates that 800,000 Xbox Live users were Netflix customers when the service launched on Xbox Live, and guesses that some 200,000 have joined Netflix in the last quarter, according to GameDaily.

"We believe that the Xbox Live Gold membership is a proverbial gold mine of potential members, and expect to see as many as 1 million join as Netflix members in the next year," said Pachter.