Mark Whitten announced the service briefly but with few details. He said more content partners would be added later.
Xbox Live is also getting a few more features to beef up the entertainment experience. The service is going to get YouTube, Bing for search, and voice control to control all of it.
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You'll be able to use Bing to find more content to watch, by searching the Web, YouTube, Live TV, and all the services on Xbox Live, including existing ones like Netflix and Hulu Plus. And voice control will let you speak your search item, such as the name of a movie, TV show, or game.
That means less time fiddling around with a controller. "You no longer have to navigate through the menus to find content," said Mark Whitten, head of Xbox Live.
Whitten said Microsoft plans to increase its partnership "by a factor of 10."
"This is only the beginning," he said.