TiVo, pioneer of the Digital Video Recording industry, has entered into an alliance with online movie rental giant, Netflix, to allow U.S. customers to stream digital movies onto their TV sets.

“For Netflix and TiVo subscribers, this collaboration offers a fabulously easy way to enhance the enjoyment of watching movies in the comfort of their living rooms,” commented Reed Hastings, the CEO of Netflix.

More than 12,000 movies and TV shows will be available as part of a monthly subscription service, viewable on TVs equipped with TiVo DVR units.

“Joining forces with Netflix creates the ultimate video on demand service… delivering the best content available anywhere right to the TV,” explained TiVo CEO, Tom Rogers. “Adding Netflix to our already vast library of content differentiates TiVo even further from any other offering in the market today.”

Despite its strong brand and quality product, TiVo has struggled to maintain a competitive edge in recent years, as cable companies introduce their own increasingly advanced DVR services at discount prices.

The new TiVo/Netflix service is currently being tested in several thousand homes, and is expected to be commercially available in early December.