Microsoft adds TV, Movie downloads to Xbox Live

Microsoft Corp on Monday announced its plan to sell TV shows and rent movies that can be downloaded through its Xbox Live online video-game service and transmitted straight onto users’ television sets.

To regulate the said service, Microsoft has teamed up with several Hollywood studios including CBS, MTV Networks, Paramount Pictures, Turner Broadcasting System Inc. (TBS Inc.), Ultimate Fighting Championship (UFC) and Warner Bros. Home Entertainment.

The software giant will initially bring a catalog of over 1,000 hours of hit TV shows and movies to Xbox 360 owners in the U.S. by the end of the year.

The service that enables Xbox 360 video game console owners watch high-definition movies and TV shows will include shows like CBS Corp's "CSI", Viacom's "South Park" on MTV Comedy Central; and movies such as Paramount Pictures' "Mission Impossible III" and "Jackass: The Movie", plus Warner Bros' "V for Vendetta" and "Superman Returns", amongst others.

All the contents, a majority of which will be in standard definition, and some in high definition; will be available through Xbox 360 to Xbox Live (free/paid) users. The service will allow gamers, with broadband connections, to send text or voice messages to each other, and watch movie trailers and other product demonstrations.

Microsoft will begin the service on the first anniversary of its most powerful video game and entertainment system, Xbox 360 that falls on November 22. After the launch of the service, Xbox 360 will become the first gaming console in history to provide high-definition TV shows and movies directly to gamers in their living rooms.

“This groundbreaking announcement is a win for everyone,” said Peter Moore, corporate vice president of the Interactive Entertainment Business at Microsoft. “It connects our partners with one of the most coveted audiences in entertainment today, and provides even greater value to our Xbox Live community, allowing them to enjoy the games and entertainment they want, when they want it.”

The financial terms of any of the deals have not been disclosed.

Although, the cost of the downloads has not been disclosed, but Microsoft said that prices of standard definition programs will be "competitive" with those offered by its rivals, including Apple Computer's iTunes Store, MovieLink, CinemaNow, and Amazon's Unbox. On the other hand, high-definition content will cost more, Moore said.

Apple's iTunes charges US$1.99 for an episode of a television show, while movie rentals generally cost about US$3.99.

TV shows will follow a purchase-to-own model, while movies will follow the rental-download model. Once a movie is purchased and downloaded to the Xbox 360's 20GB hard drive, it remains there untill not played. Once the consumer start watching it, they will have 24 hours to keep it. The television shows will be available for purchase through Xbox Live.

Beside TV shows and movies, the new service will also include sports content, including NASCAR races from TBS and more than 80 Ultimate Fighting Championship matchups.

Microsoft hopes that the new service will narrow the gap in features between Xbox 360 and PlayStation 3, as well as enhance its presence in consumers' living rooms.