It does this yes, but you can download tv shows and such on Xbox Live if you want. Its not all crap either they actually have a decent selection of Anime on there. Not to mention that typically the 360 recieves demos for cross platform stuff first if it ever comes at all. The PSN is still sorely lacking in this respect, but I personally don't care as much since I am more concerned about the quality of the online gaming itself, and this is where XBL fails and fails hard.