The Xbox 360 is used for video and music apps more than it is to play games.
Microsoft's Yusuf Mehdi told the Los Angeles Times that over half the time consumers spend on Xbox Live is used to watch videos and listen to music.
"What we're seeing is that people are turning on the Xbox to play games and then keeping it on afterwards to get other types of entertainment."
Over the past two years, Microsoft has introduced a number of video streaming services to the Xbox 360 including YouTube, Foxtel in Australia and Netflix, ESPN, Hulu and HBO Go in the US.
By Ben Salter - Tweet @Ben_Salter