Earlier this year, Paramount Pictures got into the business of selling digital movies directly to consumers on its website — originally, those movies (sold with the UltraViolet DRM scheme) were mostly tied to your computer, but now Paramount has just opened up a major new distribution partner. A new Paramount Movies app for the Xbox 360 will allow consumers to stream their purchased Paramount UltraViolet movies to Microsoft's console, making it much easier for those movies to get into your living room. Users also have the option of renting from Paramount's site, as well.
As with most of the other Xbox 360 media-playing apps, you'll need an Xbox Live Gold membership, and you'll also need to get Paramount and UltraViolet accounts set up (if you're planning to purchase). Of course, the movies are still quite pricey (most films are $19.99 for the HD version, though rental prices are a bit more in-line with the rest of the market), and the app won't play any UltraViolet movies you may have purchased from other studios. You also can't buy or rent anything directly from the app itself — you'll have to do all of that on your computer. UltraViolet's dream of interoperability between devices appears to still be more of a myth than reality.