Thursday, July 12, 2007

Microsoft movie downloads will harm DVD sales?


Concerns surrounding the future of DVD are arising this week following

Microsoft’s E3 Business & Media Summit confirmation that its 120GB

Xbox 360 Elite videogames console will be hitting European shores on

August 24.


The Elite’s 120GB hard drive represents a massive storage jump from

the 20GB Premium Xbox 360 currently available throughout Europe, and is

to be the precursor to the arrival of Microsoft’s popular Video

Marketplace download service.


Both the 120GB Elite and Video Marketplace are already available to

Xbox 360 owners in the US, and Microsoft has now said it is immersed in

talks regarding the integration of the download service for European

audiences.


A Telegraph.co.uk article reports that the Video Marketplace would

allow users to download movie (and television) content both quickly and

cheaply, which could well have a detrimental effect on regular DVD

sales and rentals.


Redmond-based Microsoft has said that it’s currently talking with

leading movie suppliers such as Disney, Paramount, and Warner Bros. in

order to secure plenty of Video Marketplace content prior to the

service’s official European launch – which is expected before the close

of 2007. The American software behemoth is also communicating with

television broadcasters (including the BBC) to widen the service’s

scope to popular TV programming too.


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