Microsoft Corp. has officially stepped away from the transactional video-on-demand (TVOD) sector, marking the end of nearly two decades of participation in this digital marketplace. The announcement was made via the company’s consumer support page, signaling a significant shift in its entertainment strategy.
Despite this exit, Microsoft reassures users that those who own digital content will still have access to their movies and TV shows on Windows and Xbox devices, including the ability to enjoy downloaded playbacks. This transition reflects the evolving landscape of digital media consumption and the company’s focus on other areas of its business.
The journey began in 2006 with the launch of the “Zune Video Marketplace,” which later evolved into Xbox Video in 2012. By 2015, the platform was rebranded as the Microsoft Movies & TV Store, positioning itself in a competitive arena alongside industry giants such as Apple TV, Google Play, Prime Video, and Fandango at Home. Over the years, electronic sell-through of movies and TV shows, combined with transactional VOD, contributed approximately billion in revenue through 2024, according to DEG: The Digital Entertainment Group.
This strategic retreat from TVOD comes on the heels of the departure of Dametra Johnson-Marletti, a prominent figure in Microsoft’s digital gaming sales division. Appointed as corporate VP in September 2022, Johnson-Marletti played a crucial role in shaping e-commerce and business strategies for digital entertainment content globally. Her previous tenure as corporate VP of Microsoft Stores Category Management involved overseeing business strategy and financial performance across the Microsoft Stores organization.
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