Microsoft beats Apple to the TV

It has been some time in the making, but Microsoft has finally announced their online video entertainment strategy for the Xbox 360.

Beginning on November 22, Xbox 360 owners will be able to buy and rent over 1,000 hours of programming using the new Xbox Live Video Marketplace. The Marketplace will see Microsoft selling programming from CBS, MTV Networks, Paramount Pictures, Turner Broadcasting, Ultimate Fighting Championship (UFC) and Warner Bros. Home Entertainment. "CSI," "South Park," "Batman Forever," and "Nacho Libre" are a few of the titles that will be offered by year's end. At launch, TV shows will be offered as download-to-own, while movies will only be available as 24-hour rentals.

Microsoft's arrival in this emerging market brings with it some impressive firsts. The company has narrowly beaten Apple in the race to find a practical set top box-like solution to get commercial video downloads to the family room TV without having to move hardware around. Apple is expected to launch its own wireless set top box solution, dubbed iTV, some time in the first quarter of 2007. Apple has already announced a retail price of $299.

Microsoft's plan to combat Apple's offering rests in the added value of the complete Xbox 360 package. iTV's features are not yet known, but a premium Xbox 360 with an additional wireless network adapter is $480, $180 more than iTV, but considerably more capable. Yet, even if they have beaten Apple to the punch, Microsoft's biggest concern will be deflating Sony's offering which will likely debut next year.

There's another trick up Microsoft's sleeve, as well. The company says that much of the content will eventually be available in High Definition—a welcome development for those of us who don't like paying full price for low resolution video. No other commercial service currently sells HD video, although sources have told us that Sony is planning to launch with HD. Microsoft says that 20 percent of the offerings will be in HD at launch, with more to follow.

Microsoft has also said that users will be able to re-download content for free, in the event that users delete content to make space for new purchases, or even if users want to sign in to Xbox Live and download the show on another console. Shows will be attached to a user's Xbox Live gamertag.

For now, the service will launch in the United States, but Microsoft plans to expand it to other territories over the coming year.