Not sure if it would be compatible on an LR3, but in my 2011 LR4 I use a tiny device called "Tune 2 Air" that the old school i-pod cable in the center console plugs into. It connects to your phone, tablet, computer, etc. via bluetooth and works great to stream music and audio from Netflix, etc. Audio quality is excellent (crushes the aux cable).
Basically it tricks the LR into thinking your Bluetooth feed is an I-pod. Steering wheel controls work to change song too. It connects automatically when you crank up the LR.
Also, when you get a Bluetooth phone call, the audio gets paused for the duration of the call and then un-pauses itself when the call ends.
If you go to Amazon and search for "Tune 2 Air" several different versions come up (looks like now they have them with the I-pod cable built in - I had to buy the cable separately). Most are labeled as compatible with Audi, but it works great on my LR4.
Photos attached. Hope this helps.