Report Suggests $92m Revenues For Xbox Live Video

A new report from market research firm Emerging Media Dynamics has suggested that combined revenues from the sale of TV shows and movies on Xbox Live could reach as much as $92.25 million through the end of 2007. The report, entitled ‘Spotlight on Television 2.0 Leaders: Microsoft Corporation’, suggests that aggregate revenue from the sale of both TV shows and movies could grow to $726 million by 2011. The ability to download video content via the Xbox Live Marketplace was launched last November in the U.S., with no indication thus far of when a similar service might be made available in Europe or Japan. The current service offers a range of TV show and movie titles to be rented and purchased, in both standard and high definition formats. The TV shows, including the likes of Star Trek, CSI and South Park, can be kept indefinitely, while movies can be watched only for a twenty-four hour period after the first viewing, expiring completely fourteen days after the initial purchase. TV shows are priced at 160 Microsoft points ($2) for standard definition episodes and 240 points ($3) for high definition versions. Movies are priced at between 240 points ($3) and 480 points ($6), depending on the age and resolution of the movie. Although the range and number of titles so far are relatively limited Microsoft has already struck content deals with media companies such as Paramount, Warner Bros., CBS, NBC and MTV – with similar services for the PlayStation 3 and PSP yet to be fully announced.