Last Thursday, February 9, 2009, Microsoft and Netflix announced they have reached the one million mark in downloads and activations of Netflix application on Xbox 360, just three months after their marriage (press release).

I have always thought Netflix had one of the best models available in the entertainment business. Microsoft, on the same hand, was not behind with its Xbox 360 and Xbox Live Gold service. When they decided to join forces in November 2008 and allow their users to streamline movies to their TV sets via their Xbox 360, I was sure we would still hear more from them in the near future.

Basically, everyone benefits from this partnership: Netflix is able to expand its services to TV sets without the expenses and delays of mailing out DVDs; Microsoft makes its product more appealing to consumers by giving them one more reason to choose Xbox 360 over PlayStation 3; and consumers can use a single device that allows them to play games and watch their favorite movies and TV episodes anytime they want. And let’s not forget the increase in revenue by Netflix and Microsoft due to new customers coming on board, and to existing customers from one side signing up for services on the other side.

If Microsoft adds to the Xbox 360 console the ability to play blue-ray movies, and Netflix expands the instant watch movie list to include newer releases, consumers won’t need anything else.

Any other thoughts? Do you use any of these services? If so, do you have any suggestions that would make this partnership even better from your perspective?