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Netflix Inc. will deliver movies over the Internet to owners of Microsoft Corp.'s Xbox 360 videogame console under an agreement the companies will announce today, according to a person with knowledge of the plans.

The accord, set to be unveiled at the E3 video-game conference in Los Angeles, will give Netflix, the largest U.S. mail-order movie service, a new outlet for film rentals to 12 million Xbox users, said the person, who declined to be identified since the announcement isn't yet public.

Netflix, with 8.2 million customers, has offered movies on computers since 2006. In May, the Los Gatos, Calif.-based company began streaming films to TVs equipped with a $99 converter box from Roku Inc. Netflix hopes that delivering movies to TVs on-demand will help it grow to 20 million users, Chief Executive Officer Reed Hastings told analysts on May 27.

Netflix spokesman Ken Ross declined to comment on the agreement, as did Katie Abrahamson, an outside spokeswoman for Microsoft. In a June 9 interview, Hastings said Netflix was working on deals to embed its movie-streaming software in devices from three major consumer-electronics companies.

Fewer movies are available online or on-demand through viewers' televisions. Netflix has Internet rights to 10,000 movies, compared with more than 100,000 available on DVD, according to the company's Web site. On-demand TV service is included in Netflix plans costing $8.99 to $23.99 a month.