Netflix and Facebook Are Heating Up Their Business Relations

Netflix (NASDAQ:NFLX) CEO Reed Hastings has just joined Facebook‘s board of directors, sparking speculation about a possible partnership between the two companies. In May, Facebook made a deal with Warner Bros. (NYSE:TWX) allowing users of the social networking site to watch films from the Warner Bros. library streaming online, using Facebook credits or $3 for a 48-hour rental. So it seems only natural that the nation’s number one social networking site and its number one streaming movie service would make a good match.

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Facebook friends could recommend movies, share thoughts on films they’ve seen, and create lists sharing their recent viewing activity. Maybe they could even stream films simultaneously and chat via Facebook while they watch. Facebook is an obvious new partnership for Netflix, which is continually expanding to new platforms, now available on gaming consoles XBox 360 (NASDAQ:MSFT), Wii (TYO:7974), and Playstation 3 (NYSE:SNE), as well as streaming players like Apple TV (NASDAQ:AAPL), Blu-ray players, TiVo (NASDAQ:TIVO), and mobile devices like the Android (NASDAQ:GOOG), Windows Phone 7, iPhone, iPad, and iPod Touch.

It’s also well-known that Facebook is continually trying to expand into new markets, first adding online chat features, then online games, now attempting to integrate itself with all forms of entertainment media like books, music, and of course, movies. And Facebook might find a partnership that gives them video content to be cheaper than developing it on their own. Plus, integrating an already popular brand prevents Facebook from having to compete with said brand while giving them a running start in a very competitive streaming video market.