Xbox Live users that subscribe to BT Broadband will soon be granted access to an extensive library of on-demand content including movies, TV, music videos and even BT Vision’s ‘near live’ FA Premier League football matches through their consoles.

The new deal marks the coming together of two corporate giants and a significant expansion of Live’s existing on-demand capabilities. Content on demand service BT Vision has already made a significant impact in the nation’s living rooms, and is now set to expand its remit through Xbox Live.

The services are expected to launch ‘in the middle of 2008’, according to a statement release this morning.

“We are pleased to partner with Microsoft to deliver a truly compelling connected entertainment experience to our customers,” said CEO of BT Vision Dan Marks. “For the first time consumers in the UK will be able to experience the advantages of an advanced TV service together with the benefits of next-generation gaming. Our aim is to provide BT Vision on multiple platforms — giving customers greater convenience, control and flexibility over what they watch, when they watch and how they watch TV. It also means that we are able to potentially expand our BT Vision customer base by tapping into the popularity of Xbox 360.”

Enrique Rodriguez, corporate vice president of the Connected Television Division at Microsoft, added: “This is an exciting moment in home entertainment. Last year at CES, we announced Xbox 360 on Microsoft Mediaroom as a powerful platform capable of enabling new entertainment experiences for consumers, and we are pleased to team with BT to bring this service to market. Together we are enabling BT Vision customers to be the first in the world to enjoy this next-generation TV and gaming entertainment experience.”