Netflix subscribers will soon be able to watch streaming movies in jaw dropping HD quality.

Manufacturer of Netflix’s set top box player Roku has upgraded the hardware enabling support of the high definition format. The hardware allows Netflix users to stream online movies to their TV set

Roku will roll out the upgraded software to its set top box during the next few weeks for no extra costs. The software will add advanced compression techniques to the $100 TV player. The new update will happen automatically over the internet and will makes streaming HD movies across customers standard broadband connection.

Netflix was the first of the online movie rental providers offering content through Roku’s device. More content providers are expected to announce support for the player during 2009.

Roku sells it’s player, around the size of a paperback, over the Web. Netflix says it offers 12,000 movies and TV episodes for rent online, including hundreds in HD format.

Netflix is in competition with Blockbuster and Apple for a place in viewers customers living rooms. Apple has Apple TV, that connects via the Internet to the company’s iTunes music and video store. Through the device, people can rent movies and TV shows. Blockbuster have their own streaming set top box available also.

The online video and movie market is forecast to be worth $4.5 billion by 2012 from its current value of $1.2 billion. However the analyst company In-Stat also found that over half of US consumers still prefer to buy a physical DVD when it comes to buying TV shows and movies.

As the online market develops and the price drops due to its non physical nature that may all change though.

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