As part of an ongoing partnership with Disney-ABC

Aug 3, 2009 13:12 GMT  ·  By

Netflix has built its business on online DVD rentals and, in just 12 years, has grown to be the biggest online movie rental service in the US. But, just as it replaced brick-and-mortar movie rental outlets, its business is also being slowly replaced by online streaming and downloads. The company knows this too as it already has a significant presence in the online streaming market as well and is now bolstering its catalogue with the addition of some Disney-ABC content.

Beginning this month, users of the online streaming service will be able to watch several seasons of ABC's most popular TV shows including Lost and Grey's Anatomy. The first five seasons of Lost will be available in their entirety, along with seasons four and five of Desperate Housewives, season five of Grey's Anatomy and the first two seasons of Legend of the Seeker. Some content will start to become available in August and the rest will be gradually rolled out in the coming months.

"We're excited about this new agreement since it builds on a strong foundation with Disney-ABC Television Group," Robert Kyncl, vice president of content acquisition for Netflix, said. "In all, we're providing Netflix members with some of the most popular and avidly followed shows on TV while working with an important business partner to help grow several of its key franchises."

The two companies made their first deal in September last year but only featured content from the Disney Channel at first, with popular shows like "Hannah Montana," "Wizards of Waverly Place," "The Suite Life on Deck," but also newer properties like "JONAS" and "Sonny with a Chance." Episodes from these and the other shows involved in that deal are available on Netflix a day after they are first aired.

The streaming service is available to all Netflix subscribers at no additional costs and the company already boasts that some 12,000 movies and episodes are available for viewing online. While impressive on its own, the number pales in comparison with the 100,000 titles the company offers on DVD or Blu-ray.