Microsoft will launch a new version of Xbox Live that provides subscribers with access to video-on-demand (VOD) content from the BBC, Channel 4, Channel 5, LoveFilm and Blinkbox, as well as music services from Muzu.tv and Vevo.

The move will bring the TV catch-up content from 4oD, Demand 5 to Xbox Live Gold subscribers at no extra fee, while access to BBC iPlayer will be free to all XBox users.

An ITV spokesman said launching on the Xbox console is also an important part of its multi-platform distribution strategy. It is also actively pursuing its mobile strategy, which has seen it roll out ITV Player on Apple and Android smartphone and tablet devices.

To date, Sky has been the only broadcaster to have TV content on the Xbox console, in sharp contrast to Sony’s Playstation 3 which already has BBC iPlayer, 4oD and ITV player.

Screen Digest senior analyst Dan Cryan said the launch marks a “concerted push” by Microsoft in the video services market, and one which will bring it in alignment with Sony.

Although the uptake of connected TVs is increasing, games consoles are far more embedded, according to Cryan. “At the moment, games consoles uptake is ahead of smart TV and set-top box uptake by a considerable distance,” he said.

In the UK, around 9m games consoles are plugged in, compared to connected TVs at 1.2m throughout 2011. However, it is expecting a much larger increase of smart TV uptake by 2015, predicting 17.3m active connected TV sets compared to 11.5m games consoles, according to Screen Digest.

Cryan said the addition of Xbox’s VOD proposition will put additional pressure on the likes of YouView. “It becomes potentially more difficult for things like YouView, which will need to be even more compelling once it hits the market,” he said.

An exact date is yet to be confirmed but the service is expected to launch by Christmas.