Films on Xbox 360 threaten DVD rentals

By Sophie Borland

Microsoft is set to launch a service which will let people download films at home via a games console.

It would mean movies could be watched at a much cheaper rate than buying or renting the DVDs or videos from high street stores.

Once a film had been watched, it would be automatically deleted from the system freeing up enough memory on the console to download more.

The service would also allow people to watch various TV programmes such as The Simpsons and other BBC series via the games console.

The computer company said it was in talks to provide the service via its latest games console, the Xbox 360, which will be in stores on August 24.

As the service would be cheaper than renting or buying, it could spell the end for DVDs and videos and their high street suppliers.

Microsoft said that it was in talks with major film studios such as Disney, Warner Brothers and Paramount to offer downloads for the service which will launch just before Christmas.

It also said that it was in talks with broadcasters such as the BBC and was hoping to provide a wide choice of favourite TV programmes that could be downloaded via the system.

Stephen McGill, the head of UK marketing at Microsoft said: "We want to offer a full catalogue of films, TV, music videos and games that people can download to their Xbox. This service has been very successful in the US and now we want to bring it to Europe."

The films are expected to cost between £1.50 and £3 and once the games console has been bought for just under £300 it will be far cheaper than buying or renting a DVD or video.

Blockbuster, the video and DVD rental store, charges on average £3.95 to rent a film while it can cost up to £10 to buy it from any high street store.

Microsoft hopes to be the first company to offer legal downloads via its games console although rival companies Apple and Sony are known to be working on similar products.

This type of service is far more common in the US where there is about 2,100 hours worth of films available to download from the Xbox.

Technology experts have warned that the move could seriously hamper the sales of DVDs and videos.

Tom Dunmore, a technology specialist from gadget magazine Stuff said: “If you could download a film you don’t ever need to buy a DVD or ever visit a high-street video shop.

"The content available will be the key to this service. If it is good, this could help change the Xbox into a living-room computer for music and film rather than just a games console."