Video Store

On November 6, 2006, Microsoft announced the Xbox Video Marketplace, an exclusive video store accessible through the console. Launched in the United States on November 22, 2006, the first anniversary of the Xbox 360's launch, the service allows users in the United States to download high-definition and standard-definition television shows and movies onto an Xbox 360 console for viewing. With the exception of short clips, content is not currently available for streaming, and must be downloaded. Microsoft has also announced that its Microsoft TV service will add IPTV functionality to the console, giving users the ability to stream 2 simultaneous HD and 2 simultaneous SD channels.[99] Movies are also available for rental. They expire in 14 days after download or at the end of the first 24 hours after the movie has begun playing, whichever comes first. Television episodes can be purchased to own, and are transferable to an unlimited number of consoles. Downloaded files use 5.1 surround audio and are encoded using VC-1 for video at 720p, with a bitrate of 6.8 Mbit/s.[100] Television content is offered from MTV, VH1, Comedy Central, Turner Broadcasting, and CBS; and movie content is Warner Bros., Paramount, and Disney, along with other publishers.[101]

After the Spring 2007 update, the following video codecs are supported:

H.264 video support: Up to 15 Mbit/s, Baseline, Main, and High (up to level 4.1) Profiles with 2 channel AAC LC and Main Profiles.
MPEG-4 Part 2 video support: Up to 8 Mbit/s, Simple Profile with 2 channel AAC LC and Main Profiles.
As a late addition to the December Xbox 360 update, 25 movies were added to the European Xbox 360 video market place on the December 11, 2007 and cost 250 Microsoft points for the SD version on the movie and 380 Microsoft points for the HD version of the movie.[102] Xbox Live members in Canada featured the ability to go on the Xbox Live Marketplace as of December 10, 2007 with around 30 movies to be downloaded for the same amount of Microsoft Points.

On May 26, 2009 Microsoft announced the future release of the Zune HD (in the fall of 2009), the next addition to the Zune product range. This is of an impact on the Xbox Live Video Store as it was also announced that the Zune Video Marketplace and the Xbox Live Video Store will be merged to form the Zune Marketplace, which will be arriving on Xbox Live in 7 countries initially, the United Kingdom, the United States, France, Italy, Germany, Ireland and Spain.[103] Further details will be released at the Microsoft press conference at E3 2009.