Microsoft's Xbox Live Video Marketplace has been a popular service and has gained more and more studio support for its digital downloads as the months have gone by. With HD DVD no longer a viable option, Microsoft would love nothing more than for their digital downloads service to dominate the video scene.

Recognizing the great potential for Microsoft's Video Marketplace, Netflix may soon be giving the Xbox 360 console a boost. According to Reuters, the popular movie rental company has surveyed its subscribers to see how interested they would be in streaming movies to their televisions through an Xbox 360. Netflix spokesman Steve Swasey would not tell Reuters, however, if the survey is a hint of a soon-to-be announced partnership between Netflix and Microsoft. That said, Netflix has gone on record as saying they'd like to provide movies to consumers' TVs "in as many ways as possible." Back in January, Netflix announced one such way it'll do that; the company partnered with LG Electronics to produce a set-top box to stream movies to HDTVs.

As our friends at Joystiq point out, this idea of Netflix on consoles has been rumored for some time now, and the seemingly close relationship between Netflix and Microsoft was only further highlighted when Netflix CEO Reed Hastings joined the Microsoft board of directors last year.

We've contacted Microsoft for comment on Netflix for Xbox 360, and we'll update this story accordingly. [Update: MS declined to comment.]