Microsoft shuts down Movies & TV digital storefront on Xbox and Windows

Microsoft has discontinued its Movies & TV digital storefront on Xbox consoles and Windows devices, effective July 18, 2025. The closure eliminates the ability to purchase new movies and television shows through Microsoft Store on Windows and Xbox platforms. Previously purchased content remains accessible through the Movies & TV application on existing devices.

The termination affects all new entertainment content acquisitions on Microsoft.com, Microsoft Store on Windows, and Microsoft Store on Xbox. Users retain full access to their existing digital libraries through the Movies & TV application on Xbox and Windows devices. Downloaded content will continue functioning on Windows systems in HD maximum resolution.

According to Microsoft's support documentation, "Downloads will continue to be available on Windows and in HD max resolution." The company maintains that users "can continue to enjoy your previously purchased movies and TV shows using the Microsoft Movies & TV app on your Xbox or Windows device."

Microsoft's technical implementation preserves backward compatibility for existing purchases. Xbox users can continue playing personal videos on their devices. Windows users maintain access to playback functionality, including downloaded content playbacks. The Movies & TV application serves as the exclusive platform for accessing purchased entertainment content.

The company's refund policy remains unchanged. "Per the Microsoft Store Terms of Sale, Movies and TV shows are ineligible for refunds," Microsoft states in its official documentation. Users experiencing technical issues with previously purchased content can contact Microsoft Support for assistance.

Content portability options exist through Movies Anywhere for United States residents. This service enables users to connect select purchased movies with other Movies Anywhere retailers. However, direct content migration to alternative services remains unavailable for most users.

Microsoft's Xbox and Windows stores continue hosting third-party entertainment services. Available transactional services include Amazon Prime Video, Apple TV, and Fandango at Home. These platforms now serve as primary options for new entertainment content purchases within Microsoft's ecosystem.

The decision represents a strategic shift away from first-party entertainment retail operations.

Microsoft's entertainment storefront originated with the Zune Marketplace in 2006. The platform evolved through Xbox Video in 2012 before becoming the Movies & TV application and store in 2015. This represents a decade of operation before the current shutdown.

The closure follows Microsoft's broader pattern of discontinuing consumer media services. The company previously shut down its Groove Music service in 2017, creating anticipation among Xbox and Windows users regarding the Movies & TV store's longevity.

Digital entertainment distribution has shifted toward subscription-based streaming models. 

Microsoft maintains server infrastructure for existing content libraries. The company provides ongoing support for previously purchased content through established channels. Users experiencing playback issues can access Microsoft Support assistance for technical problems.

The Movies & TV application requires continued server connectivity for content authentication and delivery. Microsoft has not disclosed specific timelines for server support, creating uncertainty about long-term content accessibility. Industry precedent suggests major platforms typically maintain legacy content servers for multiple years following service discontinuation.

Content licensing agreements between Microsoft and entertainment studios determine availability periods for purchased titles. These agreements may include expiration dates that could affect long-term access to specific content, independent of Microsoft's server infrastructure decisions.

Timeline

• 2006: Microsoft launches Zune Marketplace for entertainment content
• 2012: Xbox Video replaces Zune Marketplace
• 2015: Movies & TV app and store launches
• 2017: Microsoft discontinues Groove Music service
• March 2024: Microsoft Advertising announces Netflix partnership for Connected TV
• September 2024: Microsoft enhances Performance Max campaigns with AI-driven features
• May 2025: Microsoft announces Xandr DSP discontinuation
• July 2025: Microsoft advertising revenue exceeds $20 billion annually
• July 18, 2025: Microsoft shuts down Movies & TV store operations
• February 28, 2026: Planned discontinuation of Microsoft Invest DSP

Complex marketing terminology explained

Connected TV (CTV) advertising: This represents advertising delivered through internet-connected television devices and streaming platforms rather than traditional broadcast television. CTV advertising enables precise audience targeting based on viewing behavior, demographic data, and content preferences. Unlike linear television advertising, CTV platforms can deliver personalized advertisements to individual households while maintaining measurement capabilities that track viewer engagement, completion rates, and conversion actions. The technology supports various ad formats including pre-roll, mid-roll, and interactive overlays across streaming services.

Demand-Side Platform (DSP): A sophisticated software system that enables advertisers and agencies to purchase digital advertising inventory across multiple exchanges and publishers through automated bidding processes. DSPs integrate real-time bidding capabilities, audience targeting parameters, and campaign optimization algorithms to execute media buying decisions within milliseconds. These platforms aggregate inventory from various supply sources, apply targeting criteria, and manage budget allocation across campaigns while providing detailed performance analytics and attribution modeling for advertising investments.

Programmatic advertising: An automated method of purchasing and optimizing digital advertising space using algorithmic decision-making and real-time bidding technology. This approach eliminates manual insertion orders and negotiations by enabling advertisers to target specific audiences across vast inventory pools through data-driven selection criteria. Programmatic systems analyze user behavior, contextual signals, and campaign objectives to determine optimal ad placements, pricing, and creative variations while executing thousands of transactions per second across global advertising exchanges.

Performance Max campaigns: Google's AI-powered campaign type that automatically optimizes advertisements across all available Google inventory including Search, Display, YouTube, Discover, Gmail, and Maps using machine learning algorithms. These campaigns leverage automated bidding, creative optimization, and audience targeting to maximize conversion goals without requiring manual platform-specific management. The system continuously analyzes performance signals to adjust targeting parameters, creative combinations, and bid strategies while expanding reach across Google's entire advertising ecosystem.

First-party data: Information collected directly by organizations from their own customers through owned touchpoints including websites, mobile applications, point-of-sale systems, and customer service interactions. This data encompasses user behavior patterns, purchase history, demographic information, and engagement preferences that companies gather with explicit user consent. First-party data provides the highest accuracy and relevance for advertising targeting while maintaining compliance with privacy regulations, making it increasingly valuable as third-party cookie support diminishes across web browsers.

Audience segmentation: The strategic process of dividing consumer populations into distinct groups based on shared characteristics, behaviors, or preferences to enable more precise advertising targeting and messaging. Advanced segmentation incorporates multiple data sources including demographic information, psychographic profiles, purchase behaviors, content consumption patterns, and engagement history. Modern segmentation leverages machine learning algorithms to identify complex behavioral patterns and predict future actions, enabling advertisers to create highly personalized campaign strategies that resonate with specific audience subsets.

Real-time bidding (RTB): An instantaneous auction process where advertising inventory is bought and sold on a per-impression basis through automated bidding systems. When a user visits a webpage, available ad space triggers an auction where multiple advertisers compete to display their advertisements based on targeting criteria and bid amounts. The entire process occurs within 100 milliseconds, allowing advertisers to evaluate user profiles, contextual factors, and campaign objectives before submitting competitive bids for optimal ad placement opportunities.

Attribution modeling: A systematic approach to assigning conversion credit across multiple touchpoints in the customer journey to understand how different marketing channels contribute to desired outcomes. Advanced attribution models use statistical analysis and machine learning to weight the influence of various interactions including initial awareness, consideration activities, and final conversion events. This methodology enables marketers to optimize budget allocation across channels, understand cross-channel synergies, and measure the true impact of advertising investments on business objectives.

Conversational AI advertising: An emerging advertising approach that integrates interactive, dialogue-based experiences powered by artificial intelligence into marketing campaigns and customer touchpoints. This technology enables brands to create personalized, context-aware conversations that adapt to user queries and preferences while maintaining advertising objectives. Conversational AI advertising leverages natural language processing, machine learning, and predictive analytics to deliver relevant product recommendations, answer customer questions, and guide users through purchase journeys within chat interfaces and voice-activated platforms.

Cross-platform optimization: A comprehensive strategy that coordinates advertising campaigns across multiple digital channels and devices to maximize overall performance while avoiding audience overlap and budget inefficiencies. This approach uses unified measurement frameworks, shared audience insights, and coordinated creative strategies to ensure consistent messaging and optimal frequency distribution. Cross-platform optimization requires sophisticated data integration capabilities to track user journeys across touchpoints, attribute conversions accurately, and adjust campaign parameters in real-time to achieve optimal return on advertising investment across the entire marketing ecosystem.

Summary

Who: Microsoft Corporation, affecting Xbox and Windows users globally, with impact on entertainment content purchasers and digital advertising professionals.

What: Complete shutdown of Movies & TV digital storefront, eliminating new entertainment content purchases while preserving access to previously purchased titles through the Movies & TV application.

When: Effective July 18, 2025, with the announcement made on the same date through official Microsoft support documentation.

Where: Microsoft Store on Windows, Xbox consoles, and Microsoft.com, affecting users globally across all supported regions and markets.

Why: Strategic realignment toward AI-powered advertising solutions and third-party entertainment service partnerships, moving away from first-party digital content retail operations as part of broader platform consolidation efforts.