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Microsoft has joined Sony in promising and then removing video sharing from their revamped online service.  I am not surprised, it would be very difficult to implement such a service. 

http://www.joystiq.com/2008/10/12/movie-sharing-not-part-of-nxe-launch/

"Despite originally listing the ability to share Netflix movie rentals among the New Xbox Experience's list of features, it looks like any cross-Xbox Live watch party we had planned for the fifth season of Hawaii Five-O will have to wait.

The movie sharing feature won't make the service's November 19 launch; however, it could conceivably be added in at a later date says Albert Penello, group marketing manager for the Xbox 360. Penello told MTV Multiplayer that such capabilities are "certainly the aspiration" which we're pretty sure is marketing manager for "we're working on it." It's not like there won't be plenty to take in once NXE is released though, for the time being, it looks like any DVD launch parties (even those for swank 70s cop shows!) will be single living room affairs. Sorry, Grandma!"



Thanks for the input, Jeff.