Microsoft: HDTV and HD video movie downloads for your XBOX 360

Microsoft has announced a video download service, where you will get to watch high definition movies on your TV screen via the XBOX Live game console.

I first spotted this news on Engadget, under the title “Microsoft’s Xbox Live Video: HDTV and HD movie downloads for your 360“.

The Xbox 360, along with Akimbo, will be among the first mass-market devices able to download high def television programs — and the first we know of in the states able to download HD movies. The service is called Xbox Live Video, and the fall update enables customers to spend their Microsoft points on standard and HD television from CBS, MTV, Comedy Central, VH1, Turner, and UFC, as well as HD movies from Warner Bros., Paramount, and so on. We’re still a little in shock, ourselves, that Microsoft was able to in one fell swoop hit TiVo, Apple, Netflix, and a handful of others, but looking at Live over the last year, the move isn’t that massively surprising. Of course, not even the vision of on-demand HD movies and TV downloads in six million homes at the flick of a switch could be without its variety of niggling concerns; being that we all know the devil’s in the details, click on to get the particulars of the service.

Checking the online news sites it’s apparent that this is a significant development. BusinessWeek Online was quick away with the story, headlined Microsoft to offer shows on Xbox Live:

[Microsoft] announced Monday that beginning Nov. 22, Xbox Live users with the latest console will be able to choose from shows including “South Park,” which airs on MTV’s Comedy Central, CBS Corp.’s “CSI,” and movies including Warner Bros.’ “V for Vendetta” and Paramount Pictures’ “Mission Impossible III.”

In addition to CBS, MTV Networks, Warner Bros. Home Entertainment and Viacom Inc.’s Paramount, Microsoft has signed agreements with Turner Broadcasting System Inc. and Ultimate Fighting Championship, a privately held Las Vegas company that primarily broadcasts pay-per-view fights.

The Washington Post also delivered with a late evening article, “Microsoft to offer movies, TV shows on game service“:

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.

Earlier this year, Amazon.com announced it would sell movies for download at its online store, while Apple (AAPL.O) 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.

Even the technology investment blogs are onto it, “Xbox Does IPTV - It’s Official“:

It is abundantly clear that the center of power in video content distribution is moving from Cablecos to next generation set top boxes using high speed broadband connections.

In the absence of incumbent Cablecos unbundling the content, new providers of set top boxes will.

This is fundamentally why cable companies are over valued, and operators of content platforms (like Microsoft, Sony (SNE), Apple (AAPL) and Tivo (TIVO) ) superbly positioned.

It is the basis for why I think Cisco (CSCO) overpaid for Scientific Atlanta…

And, of course, Cnet weighs in too, “Xbox Live cues up TV, movie downloads“”

Some of the content will be available in high-definition format, while the rest will be in standard definition.

And as Microsoft tries to cement its hold on consumers’ entire households, the new feature appears to be the company’s latest attempt to put significant amounts of high-definition content into users’ living rooms in advance of similar offerings on the horizon from Apple Computer and Cisco Systems.

“It’s certainly important from the standpoint of being the first mover of this kind of technology into the living room,” said Rob Enderle, principal analyst at the Enderle Group. “They’re clearly trying to get this out before Apple’s launch of iTV next quarter and (right around the time when) Sony gets the PlayStation 3 out.”

Mind you, late last month Jeremy Reimer at Ars Technica pointed the way with his article “Microsoft prepares major update to Xbox Live” and this interesting little snippet:

The update will also allow the user to stream WMV videos (including DRMed WMV files) from any Windows PC running Windows Media Player 11 or Media Connect, or from data CDs, DVDs, USB 2.0 flash drives, or Xbox 360 memory cards. Owners of the new Zune music player will be able to stream pictures and music directly to the Xbox 360. For fans of high resolution, the big news is the addition of progressive-scan 1080p display for games and videos that support that resolution (it will, of course, require a monitor capable of displaying 1080p).

There’s more coverage of the XBOX 360 Video download story on:

“And if Microsoft can pull this off, they will become the first major company to offer truly compeling HDTV video on demand.” — Thomas Hawk

“… it’s going to make it all that much harder for Apple to convince people to fork over $300 dollars in order to have the privilege of being able to pay for VoD films.” — Davis Freeberg

“There are approximately 6 million Xbox 360’s sold, and about 100 million DVD players, so Netflix still has the advantage for now.” — Hacking Netflix

“Snooze you lose! I see an Xbox 360 in my future…” — Zatz Not Funny

So all of a sudden the online video and Internet TV space got a whole lot more interesting!