Microsoft to push for "fair-use"
It seems that Microsoft is pushing next generation video technology HD-DVD instead of competing format Blu-ray. Nothing exciting there, until you delve a little deeper about their reasoning. HD-DVD has some built in copy mechanisms to allow you to fair-use copy your purchased movies.
If I had to guess, I'd say it's because Microsoft wants to be able to market the next generation video IPod. Currently (with DVDs) it's illegal under any circumstances to copy your legally purchased DVDs. Microsoft (or anyone) can't legally sell a piece of hardware to allow you to rip your DVDs and play them on another piece of hardware. Looks like maybe they're trying to be a little more flexible the next time around so as they don't DRM themselves out of the market.
If I had to guess, I'd say it's because Microsoft wants to be able to market the next generation video IPod. Currently (with DVDs) it's illegal under any circumstances to copy your legally purchased DVDs. Microsoft (or anyone) can't legally sell a piece of hardware to allow you to rip your DVDs and play them on another piece of hardware. Looks like maybe they're trying to be a little more flexible the next time around so as they don't DRM themselves out of the market.