Because your X-Box has a big hard drive and is likely wired to both your television and the internet already, Microsoft figured they could make some cake selling you downloadable video entertainment for it:
Console owners with a broadband Internet connection can download the videos directly to the 20-gigabyte hard drive on the Xbox 360, which already is connected to a television in most homes.
The service also stands out because it offers videos in standard-definition and high-definition formats.
Xbox chief Peter Moore says that if nothing else, it will help position the 360 as an entertainment device that can appeal to each family member. If you're not a hard-core gamer, you can still find a reason to keep the system in your living room.
There's the usual insane rules about what you can look at and how long you can rent something, to keep the content providers happy about copyrights. But for many people, there is no additional hardware cost or fuss to this at all, so there may be a market for the service.
Read the whole thing here.