Here's a good article by Kemp Powers at Reuters on how Microsoft is trying to expand their Xbox Live to a wider audience. They're doing this by offering other services than just online game play, one feature mentioned is by offering video downloads of movies, and TV shows.

I agree with Kemp. As the gamer matures (cough, cough), there are many of us who started out playing Pong, moving on to our Nintendos, Atari systems, Genesis, Xbox, and now Xbox 360. This mature gamer now has kids, and are sophisticated enough to see how the gaming console may provide more than just a gaming experience. The gaming console could provide a media gateway as well as gaming and accommodate the entire families entertainment needs. I think we'll be seeing more of this being offered by the manufacturers in the coming years.