LG announced a new TV with the ability to stream movies from NetFlix without a set-top box. Essentially, the TV comes with an Ethernet connection and Linux operating system to run applications and stream content right to the TV.

Other TV manufacturers, like Sony, have said they will include Ethernet ports into their sets, but this is the first time that any application has been enabled directly into a TV set.

According to Gizmodo, the TV sets will cost about $200 to $300 more than similar TVs without NetFlix streaming. That’s rather interesting since you can buy the Roku NetFlix Player for $99. I imagine the disparity is because Roku is taking a loss on every Roku box they sell, and are making money from NetFlix somehow.

The other downside is that the LG TV sets will probably not have Wi-Fi. If that’s the case, you’ll need to run an Ethernet cable into your living room and connect it to your TV. (Actually, I’ve already done this because of the set-top box clutter, but that’s another story.)  The Roku box comes with an Ethernet port, but also comes with Wi-Fi.  If you’re into high quality video, you should probably connect with the Ethernet cable, because quality via Wi-Fi isn’t as good. There’s a longer start buffer, and seeking to different parts of the show is also very slow.

In effect, the only advantage to these broadband enabled TVs is avoiding another set-top box. That’s a noble goal, but it’s not very compelling or earth-shattering to most users. Another box vs. another $300 for your TV.

GigaOm has a post about Broadband TV, as he calls it, but he’s looking at it from NetFlix’s point of view.  And he makes a pretty good point about NetFlix. First of all, NetFlix already has the main ingredients to success as a primary VOD supplier. They have agreements with Hollywood, and they also have the technology to deliver movies over broadband connections.  Plus there’s the stand-alone Roku NetFLix Player box, and now broadband TVs.  So NetFlix needs to weather the storm now, and wait until the world (and technology) catches on to Internet-delivered entertainment into the home.

Eventually, I believe all HDTVs will be broadband enabled, so this is a good start.It’s a good bet that set-top boxes will disappear eventually, but not for a very long time.  Hopefully, future HDTVs will have broadband connections and an open source TV platform for running and creating applications. Imagine what creative applications we can experience on our TV screens. Imagine all the Internet companies that would rush to create applications. There would be Flickr, YouTube, Facebook, Google–anything on the web delivered to the TV. Think about the iPhone App model, except on the TV screen.

Interesting eh?