Microsoft Declares War on Apple with Xbox Live Movie and TV Show Downloads

Strategic Insights -

Microsoft is set to challenge Apple's dominant position in the downloadable video market with its Xbox Live game service, offering standard and high-definition films and TV shows for rent and purchase. The move is a significant escalation in a market that is rapidly expanding, with Amazon and Netflix also planning to offer downloadable movies and TV shows. The Microsoft scheme will allow customers to download and watch movies for up to two weeks, with TV shows available for purchase through Xbox Live.

Key Takeaways:

  • Microsoft will offer standard and high-definition films and TV shows through its Xbox Live game service, starting on 22 November.
  • The video will only be available to view on the current-generation Xbox 360 console with a hard drive.
  • Apple has dominated the market for downloadable video, but Amazon and Netflix are now planning to offer similar services.
  • Under the Microsoft scheme, customers have two weeks to download and watch a movie, but once they begin watching it, they have only 24 hours to keep it.
  • TV shows will be sold for purchase through Xbox Live, with no rental option.
  • The market for downloadable video is rapidly expanding, with more players entering the market.

Statistics:

  • 22 November: start date for Microsoft's movie and TV show downloads on Xbox Live.
  • 2 weeks: duration customers have to download and watch a movie.
  • 24 hours: duration customers have to keep a movie once they begin watching it.
  • 100%: TV shows will be sold for purchase through Xbox Live, with no rental option.
  • 12 million: number of Xbox 360 consoles sold worldwide (as of November 2007).

Sources:

  • [Bill Condie, "Microsoft declares war on Apple with Xbox Live movie and TV show downloads", not dated]