Microsoft and The Walt Disney Company announced a multiyear agreement to cooperate on several long-term digital media initiatives to improve the quality, security and reach of digital content within the home and on Microsoft Windows XP-based PCs as well as on a growing number of home and portable entertainment devices. As part of the agreement, Disney will license Microsoft Windows Media Digital Rights Management (DRM) technology.

"Disney is dedicated to providing consumers with entertainment content on various platforms, and this agreement with Microsoft helps facilitate those new business initiatives," said Peter Murphy, senior executive vice president and chief strategic officer for The Walt Disney Company. "The continuing migration of content from analog to digital formats has exciting implications for both consumers and content owners, and we believe this agreement will accelerate this evolution and bring about a vibrant market for legitimate, high-quality entertainment delivered to new categories of end-user devices, such as personal media players and home media center PCs."

"With technologies now available to bring new experiences to consumers, including high-quality digital movies through a range of secure delivery methods, the time is right for a significant cooperative effort such as this one between Microsoft and Disney to help guide the industry," said Will Poole, senior vice president of Windows Client Business at Microsoft. "Our shared goal is to ensure that consumers will have access to great content on many different devices including Windows XP Media Center PCs, high-definition TVs or Portable Media Center devices - without having to worry about compatibility issues. Together we aim to prove that the distribution and consumption of digital media can be done in ways that benefit everyone."