Microsoft announced at CES this week that Xbox LIVE Marketplace has added Disney/ABC Television Group and Metro-Goldwyn-Mayer Studios Inc. (MGM) to its content provider roster.

Disney, ABC and MGM join Microsoft’s growing lineup of online content for Xbox Live Marketplace. The addition gives Microsoft hit television content such as “Lost,” “Grey’s Anatomy,” and “High School Musical” as well as classic movies like “The Terminator,” “Rocky,” and “Silence of the Lambs.” Xbox Live Marketplace Video Store now has more than 35 networks and studios providing video entertainment. Disney, ABC, and MGM content will be added later this month.

“Disney/ABC Television Group and MGM are two of the biggest names in the entertainment industry, and this announcement helps continue to evolve and diversify the content offering on Xbox LIVE,” said Robbie Bach, president of the Entertainment and Devices Division at Microsoft, in a press statement. “The ability to offer such great content in high definition further expands Microsoft’s commitment to connected entertainment with Xbox 360.”

The announcement bolsters Microsoft’s lineup for online content and also gives the software giant a alternative to HD DVD, which could begin to fade after recent wins by rival Blu-ray. Xbox Live Marketplace’s Video Store can still provide HD content to Xbox owners but without the hassle of worrying about discs and competing formats.

The Video Store, originally named Video Marketplace, got off to a rocky start when it was launched in late 2006. The online video service was plagued with long download times, billing issues and other technical glitches. But over the last year, the service has emerged as a popular feature for Xbox Live subscribers and a viable challenger to similar video download services such as Apple’s iTunes.