Microsoft to offer movies, TV shows

By Lisa Baertlein

LOS ANGELES  - Microsoft Corp. on Monday said it would rent movies and sell television shows through Internet downloads to its Xbox Live video game service, pitting the software giant against long-time rival Apple Computer Inc. and others responding to the explosion of video on the Web.

Watching shows on computers, iPod players and even cell phones has become almost commonplace. Apple has upgraded its iTunes online music store for video and services like YouTube have attracted world-wide attention.

Microsoft will begin on Nov. 22 to offer standard and high-definition films such as Warner Bros.' "Superman Returns" and "Jackass: The Movie" from Paramount Pictures through its Xbox Live Marketplace.

Television shows will include Viacom Inc's "South Park" and "CSI: NY" from CBS Corp. Viewers will need the current-generation Xbox 360 console with a hard drive to take advantage of the service.

Earlier this year, Amazon.com announced it would sell movies for download at its online store, while Apple already sells music, videos and games for its iPod devices.

Apple also is planning a 2007 launch for its iTV, which will allow users to watch downloaded movies and television episodes from iTunes on the television.

DVD rental service Netflix Inc., which currently sends movies through the mail, also aims eventually to allow movie downloads.

Microsoft customers have a two week window from when they download a movie to watch it, but once they begin watching it they have only 24 hours to keep it.

Television shows, on the other hand, will be sold for purchase through Xbox Live.

Microsoft expects to offer 1,000-plus hours of video content through Xbox Live by the end of 2006.

"This is a first step," said Scott Henson, director of platform strategy at Microsoft. He declined to give pricing information for the service.

Microsoft has 4 million subscribers on Xbox Live, where video gamers can chat, compete and collect status-building gamer points, although some subscribers have the original version of Xbox which does not work with the new video download service.

Xbox Live Marketplace currently offers movie trailers and a handful of music videos and other content.

Microsoft already partners with Movielink, a service that lets people download films to their personal computers.

Microsoft also is taking aim at Apple's lead position in mobile music with the launch of its Zune music player next week. The software maker's Zune Marketplace, which targets Apple's iTunes service, also will sell songs for about 99 cents each.

Zune users will be able to stream photos, music and videos from the player to the Xbox 360, Henson said.

Sony Corp's new PlayStation 3 debuts on Nov. 17 with an online game service called the PlayStation Network, which also will allow users to view video downloads.

Sony is the video game console market leader and its next-generation PS3 is a direct Xbox 360 competitor.

(Additional reporting by Dai Wakabayashi)