Yesterday, news source Reuters ran a story claiming that streaming game service OnLive looked to challenge streaming movie and TV show service Netflix. Turns out, it's not true.

We spoke to OnLive President and CEO Steve Perlman after today's D: Dive Into Mobile conference. Perlman said that his quote, "OnLive can deliver any experience that Netflix can," was taken out of context by Reuters.

"The other part of that [quote] was something like 'but Netflix has such a huge library,'" Perlman told GamePro. With only 200 people on staff attempting to pad out a library of 40+ games across six different platforms, he says it wouldn't make sense for OnLive to attempt growing a movie library to challenge Netflix.

This echoes Perlman's statements made earlier today at D: today when he told audiences, "It's not us or Netflix, it's us and Netflix."

A similar Wall Street Journal story that ran yesterday also misinterpreted his statements, Perlman said. As for what OnLive will do with streaming movies in the future, he clarified:

"We have plans to partner with whoever the partners are that are the best [at providing] a complete entertainment experience. We will make movies available in time, but we have no agenda to compete with Netflix."

At present, OnLive has less than half a hundred video games available for streaming on PC, Mac, iPad, Samsung's Android-based Galaxy Tab and TV via the Microconsole TV adapter. Indie hit The Ball just hit the service today.