Microsoft expands Xbox Live audio and video offerings

In addition to gaming news, Microsoft announced several enhancements to the Xbox 360's media capabilities.

(Credit: Daniel Terdiman/CNET)

Microsoft announced a host of forthcoming media upgrades for the Xbox 360 at its E3 press conference Monday. The chief highlights: an updated video store, now using the Zune branding, that will allow instant-on 1080p video purchases of movies and TV shows; improved Netflix integration; access to Last.fm's streaming audio service; and expanded access to online video content in more countries around the world. (Disclosure: Last.fm is owned by CNET's parent company, CBS Interactive.)

For starters, the Xbox Video Marketplace will be rebranded as the Zune Marketplace. The pay-per-view movies and TV shows will be upgraded to 1080p (from their current 720p incarnations), and will be available as instant-on streams rather than "queue and view" downloads. Availability of the service will also be expanded from its current 8 countries to 18.

The Zune branding was hinted at last week when Microsoft announced the updated Zune HD portable media player. Despite indications of cross-linked functionality, the Zune HD did not make an appearance at the Xbox event, nor were any specifics on syncing between the Zune and Xbox provided.

To date, the Xbox 360 remains the only game console that officially supports Netflix's streaming service. But Microsoft showed off a much-requested Netflix enhancement: the ability to search available content and modify your queue on the fly via the Xbox Dashboard, obviating the need to manage your queue on a PC. (We'd be surprised if that feature doesn't end up filtering down to other Netflix-enabled products, just as Netflix HD video--which appeared first on the 360--was quickly added to all other Netflix products via firmware updates.)

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While international audiences are often envious of U.S.-only media features such as Netflix (thanks to pre-existing contracts and usage agreements with Hollywood studios), it appears that the tables will be turned with a new Sky TV feature available only to Xbox Live subscribers in the U.K. and Ireland. The partnership with Fox's British counterpart will allow instant-on movies and TV shows, plus--the big one--streaming live TV.

Microsoft also briefly showed a "party mode" that would allow subscribers to enjoy video content simultaneously, with Xbox Live avatars shown "watching" a picture-in-picture broadcast. It was unclear when and how this function could be implemented, as well as whether it would tied into the extensive Facebook and Twitter integration with Xbox Live that Microsoft also highlighted at the event.

On the audio front, Xbox Live users will be getting access to Last.fm's streaming audio service.

Also, the dearth of any Hulu talk at the press conference effectively confirmed that last week's already debunked rumor was just that.

All of these updates were said to be coming to the 360 in the fall of 2009. The Last.fm and Netflix functions will be accessible only to Xbox Live Gold subscribers (Last.fm requires no additional charge; Netflix streaming is currently available to Netflix subscribers on the one-disc-at-a-time or higher plans.)

Editor's note: this post was updated at 12:43 p.m. PDT with greater detail on Microsoft's announcements.

[sdf0013]

No mention of Zune HD. And they didn't talk about any additional cross compatibility with licensed content. Ideally, I'd like to buy something once and have it work on all my MS devices (pc, xbox, zune, etc.). But the world is seldom in unison like that.

Can't help but wonder how they're pulling off 1080p content with "instant on" capabilities. Hopefully there's a disclaimer there. As well I hope they didn't cut bitrates to make it fit in current pipes. Hmm.

[dhavleak]

If they cut the bitrates (by compressing aggressively) they might as well have stayed at 720p. It's more likely that the service is "instant-on" if you have the bandwidth but will buffer if you don't.

I wonder if you have a 720p option if that's what you prefer (for instance if you have a TV that can only do 720p, there's no point in downloading at 1080p and then downscaling).

[AaronCT123]

Well, I know that, at the very least, the Zune client for PC keeps track of what's downloaded and if the Xbox store is, indeed, the same backend then whatever you buy on the Xbox 360 should be added to that list and retrievable from the PC. Whether you'll be able to just plug your Zune into your 360 is questionable.

[dhavleak]

The stuff that really floored me -- all the integration (netflix/last.fm/facebook etc.) + Natal (the camera/motion sensing stuff) combined can make for a really awesome experience. Straight out of minority report, I tell you..

[seespottype]

Prediction: history geeks will look back to at the Xbox as the first Macintosh made by Microsoft. Like the Mac, Xbox gives Microsoft complete control over the OS and the hardware. No longer held to the never ending task of supporting third party hardware vendors, Microsoft can focus on a great OS experience.

What's ironic is that Microsoft never wanted to play in the integrated hardware/os market. But the rogue xbox dev group put out a compelling package - I think as non gaming elements get added to Xbox - Microsoft is going to have to see that they have had the answer to all the apple barbs for years now.

The most important step foward is adding a browser to Xbox. Which in turn demands a keyboard. After that, there's no turning back.

[dhavleak]

I was about to reply saying "but nobody wants to browse on their TVs", when I paused for a moment and understood your point -- that whether they use their TVs or not, if the 360 does browsing and other stuff like that well, people will start to see it as a legit replacement for having a computer at home. Excellent point.

[tschools1970]

I have been a Zune user since the begining, I am still using the original. However I am considering a Ipod Touch and maybe even a Apple TV just so I can purchase content just once. Microsoft has got me to my last nerve with this content crap. Why aren't the same TV shows available on Zune marketplace as on the XBox Marketplace? If I can rent a movie on thw XBox why not my Zune? And please get rid of points could we just get strait up dollar amounts.

[Manbot1]

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