Microsoft closes Xbox movie deal with Disney

Microsoft has struck a deal to offer Disney films on its Xbox Live download service in the US.

The deal will allow Microsoft to offer films and TV programmes from Disney-ABC Domestic Television. Studios included in the deal are Walt Disney Pictures, Miramax Films, Touchstone Pictures and Hollywood Pictures.

As with other items on Microsoft's Xbox Live Marketplace online shop, users will be able to purchase the Disney movies using Microsoft Points.

Users purchase the points as cards at various retailers, and the points are used as currency to pay for downloads. 1,600 Xbox Live points retail for US$19.95.

New releases will be available in high-definition format for 480 points, standard definition for 320 points, HD archive films for 360 points and standard archive films for 240 points.

Microsoft played up the family angle of the deal, citing Disney's vast catalogue of animated children's films.

"With this partnership we are able to feature blockbuster new releases as they become available, as well as an incredible array of classic family films that made Disney the icon it is today," said Peter Moore, corporate vice president of Microsoft's interactive entertainment branch.

The deal also has a connection to one of Microsoft's oldest rivals, after a company spokesperson said that Pixar Studios will also be included in the deal.

The animation studio was founded by Apple chief executive Steve Jobs. It was purchased by Disney for US$7.4bn in 2006, a deal that made Jobs the largest single shareholder at Disney and a member of the company's board of directors.