Sources have confirmed that the Los Gatos Company Netflix is preparing to launch an Internet on-demand rental service paired with a Netflix-provided television set-top box. The timing and nature of this launch has yet to be discussed by Netflix representatives. It was only after a pair of software glitches on the Netflix website that customers quickly discovered an accidentally displayed reference to the download service. News of this was quickly published by devoted customers in past weeks through Internet blogs.

Last fall Netflix and TiVo announced their joint venture in developing an internet downloading service to provide customers with a way to download movies over the Internet. This service is expected to debut sometime this year with the TiVo video recorders allowing customers to download and store the films they've purchased online.

Similar services such as MovieLink and CinemaNow currently offer this service, but have struggled with a limited selection of movies and new releases. Netflix representatives believe with their selection of movie content it could sway the balance of how movies are purchased and provided through the internet. This convenient push button style would allow Netflix to offer customers a way to order and watch their movies through the Internet instead of having to wait for movies to be delivered by mail.