Xbox 360 console owners will be able to download television programs and movies, some in high-definition formats, from the Xbox Live Marketplace. The agreement will help content providers, particularly TV networks, recapture some of the audience they've lost to video games over the last few years. Although the selection of content is fairly narrow, the move is the latest indicator that Microsoft's home entertainment strategy is no longer centered on the PC.

Content and Pricing

Beginning Nov. 22, Xbox 360 users with an Xbox Live account (including free Silver-level accounts) and a hard-drive-equipped console will be able to purchase and download TV programs and movies. By the end of the year, regular episodes from about 20 TV shows and a handful of movies will be available. Content partners for the service include CBS (which will offer a high-definition version of the series CSI), MTV Networks (which will offer episodes of Comedy Central's South Park and Nickelodeon's SpongeBob SquarePants), Paramount Pictures, and Warner Brothers Home Entertainment. By way of comparison, Apple's iTunes Store currently offers weekly episodes from more than 200 TV shows, but offers movies from only one studio, Disney, and no high-definition content. Movies are also available on Web-based video download services, such as Amazon's Unbox and Movielink.

The Xbox 360's optional and detachable hard drive is 20GB, with only about 15GB available after standard game data is stored—enough space to store about 10 hours of high-definition or 30 hours of standard-definition video, according to Microsoft. To overcome this limitation, users will be allowed to delete and download purchased TV shows as many times as they want. Movie downloads, in contrast, are rentals: users must start watching them within 14 days of the download and may view them for only 24 hours after starting them. Microsoft has also hinted that it will sell larger-capacity hard drives for the console if that appears justified by demand for downloadable content.

Microsoft has not announced pricing for video downloads through the Marketplace but said it will be competitive. Apple charges US$2 to download a TV episode and between US$13 and US$15 for permanent movie downloads from its iTunes store, while Amazon charges US$4 for a 24-hour movie rental from its Unbox store.

Initially, video content downloaded from the Marketplace will not be transferable to other devices. However, better integration among Microsoft consumer products is a stated goal of the company, so new scenarios are likely to emerge. For example, users might eventually be allowed to transfer video from the Xbox 360 to a Zune device or over a home network to a PC. Another possibility: the Zune Marketplace, which allows users to purchase content online, download it to a PC, and then transfer it to the Zune device, might begin to offer the same video content as the Xbox Live Marketplace, and perhaps offer credits for content already purchased via Xbox Live. (Both marketplaces use the same virtual "currency," Microsoft Points.)

No PC Required

The move bolsters the Xbox 360's digital media capabilities just as Sony and Nintendo launch their next-generation consoles. In particular, Sony's PlayStation 3 (PS3) comes loaded with digital media features, such as the ability to play high-definition DVDs in Sony's Blu-ray format, and the company owns a large store of movie and music content that it could offer for download via the PlayStation network. By announcing video downloads for Xbox 360 before the PS3 launch, Microsoft blunts any advantage that Sony might have gained by announcing similar features for its console.

The announcement is also the latest example of Microsoft's shifting home entertainment strategy, which is no longer centered on the PC. Previously, the Xbox 360 could play downloaded video only if that video were first stored on a Media Center PC and streamed over a home network, or transferred from a PC to a removable USB drive that was then connected to the console. By offering downloadable video directly to the console, Microsoft gives users a less awkward alternative than these PC-based scenarios.

The Xbox Live Marketplace home page is www.xbox.com/en-US/live/marketplace/?WT.svl=nav.