Rumor has it that Microsoft will begin offering downloadable HD movies later this month. At launch time- rumored to be around Nov. 22-over 1100 hours of video will be available to rent or purchase through an XBOX 360 connected to XBOX Live.
The rumor also mentions that rentals will run $4 for a 24-hour viewing period, with purchases ranging from $10-15, similar to pay per view and iTunes rates.
As the headline states, consider this a rumor for now (SHSIBAE who?), but also keep in mind that all Microsoft rumors have one thing in common: they're always true.