If you thought OnLive was in the gaming business, think again. The startup known for streaming live games off the cloud is seriously contemplating to begin stream Hollywood movies and television shows.

As you know, OnLive is a clever cloud service that offloads game execution to its servers and instead delivers a live video stream of the actual in-game action to the connected gamer in near real-time. This lets you play the latest games with maxed out settings on a modest PC, provided you’re on a speedy enough broadband connection that has enough throughput to deliver a high-quality video stream without noticeable lag.

Well, OnLive plans on leveraging this technology to deliver any content, namely first-run Hollywood movies, putting the cloud gaming startup on a collision course with Netflix. OnLive on its part isn’t afraid of healthy competition. Quite the contrary, their CEO Steve Perlman says it’s a question of when, not if. 

Speaking to a Reuters reporter, Perlman fired this potshot at Netflix:

Streaming technology is available to anybody. We want to work with the studios. All of these guys want to offer content, we?re just here to distribute. OnLive can deliver any experience that Netflix can.

The report notes that OnLive is already in talks with content owners, with the yet unnamed service scheduled to go live "some time next year."

Of course, OnLive faces an uphill battle against Netflix which practically owns the streaming movies market. The Netflix service is found on a wide variety of devices spawning computers, consoles, Blu-ray players, smartphones, tablets, and more.

On the other hand, OnLive brings a lot of cutting-edge technology to the table and the fact that Warner Bros. is a major investor in the company (with AT&T being another one) doesn’t hurt either.

Last week OnLive unveiled an all-you-can-eat plan that lets gamers access any title from their catalogue for ten bucks a month via a dedicated console that connects to a TV, pictured above.

The combination of streaming movies, TV shows, and games via the OnLive service could pose a serious threat to the likes of Sony and Microsoft whose consoles also stream paid Hollywood entertainment.

Source: Reuters