LG, Sharp and Chunghwa have agreed to plead guilty. The crime: Coordinating higher prices on flat-screen LCD displays sold to Apple, Dell, Motorola and others. The Department of Justice's antitrust division claims the three companies held meetings and traded messages in order to agree on higher prices for the displays. The DOJ's press release has full details. (Illustration by Plasma.com)

In a conference call yesterday, CEO Reed Hastings of Netflix explained to analysts that the company's profits were down partly due to investment in the online delivery of movies. He also revealed that the company has signed deals with four manufacturers, including LG, the large Korean conglomerate. Netflix's partners have agreed to build the ability to watch movies downloaded from Netflix directly into their hardware, and promised to deliver these products by the fourth quarter — just in time for the holiday shopping season. Netflix customers wouldn't have to pay for individual titles, just their normal monthly subscription fee, similar to Netflix's current Web-based movie distribution service. What he didn't say, but we're wondering: Will LG and the others get a cut of the fees, as Apple does from AT&T for the IPhone? (Photo by AP/John Todd)

Netflix has ditched plans to enter the hardware market in favor of partnering with LG Electronics — and every other set-top box manufacturer on the planet. So far, Netflix's streaming subscription will support LG's combo Blu-ray and HD-DVD player and a standalone box, but it plans to market the service to makers of DVRs and game consoles. [Reuters]

We hate to interrupt the Apple lovefest with a tiresome observation about currency markets. But for anyone still outside the reality distortion field, here's some required reading: A Wall Street Journal article about the rise in value of the South Korean won (reg. required). Here's why this is bad news for the iPhone.What's an iPhone? Mostly a metal and plastic package for a flash-memory chip and an LCD screen. And where do those come from? Largely from South Korea, home to Samsung, LG, and countless other parts-makers. Those poor souls get paid in dollars, which are worth less as the won gets more valuable. Apple, whose profits have been supercharged by rapidly falling component prices over the past year, will have a tough time negotiating lower prices. If the won appreciates further, forget hopes of an iPhone cheaper than its current $499 price tag.