Floppyhead – Digital Media and Streaming

From Microsoft’s press release about high definition movies and shows for the Xbox 360,

Microsoft Corp. today announced agreements with CBS, MTV Networks, Paramount Pictures, Turner Broadcasting System Inc. (TBS Inc.), Ultimate Fighting Championship (UFC) and Warner Bros. Home Entertainment to bring an initial lineup of over 1,000 hours of hit TV shows and movies to Xbox 360™ gamers in the U.S. by the end of the year. Furthermore, Xbox 360 will be the first gaming console to bring standard and high-definition TV shows and movies via digital distribution over the Internet directly to the consumer.

This seems like a good thing for Xbox 360 owners, but what about the rest of us? The logical step for Microsoft would be to incorporate this feature into Windows Vista, and directly into the media center interface. Microsoft has been aiming at Apple and iTunes for a little while now. ITunes does not offer movies or TV shows in high definition.

Interestingly, this announcement was made without much hype. Compare this to Apple’s announcement of iTV and two things become clear: 1) Apple is the master of marketing and generating buzz, and 2) the iTV is in serious trouble if features are not added beyond what has already been announced. Right now an Xbox 360 is $100 less than the predicted price of iTV.