Microsoft today announced the expansion of Zune, its music and entertainment service, to a new platform and new markets. Zune will extend its video service to Xbox live internationally this autumn.

Zune will be the premium partner in the Xbox Live Video Marketplace, bringing a catalogue of TV and films to the platform. At E3 next week, attendees will see first-hand how Zune integrates into Xbox Live.

This is the first time Microsoft has marketed the Zune entertainment service in Europe and is also a key step in Microsoft’s strategy to offer consumers a connected Zune experience across three screens (TV, PC and mobile).

“The Zune experience is growing beyond a music player in the U.S. Zune’s international expansion starts with video on Xbox LIVE; eventually we’ll offer the full digital entertainment experience spanning screens, devices, platforms and geographies,” said Chris Stephenson, General Manager of Consumer Marketing for the TV, Video and Music Business. “Delivering on Microsoft’s connected entertainment vision; this news marks a turning point for Zune as it brings cross-platform experiences and premium video content to living rooms around the world.”

Consumers will have the option to view a wide selection of TV and film content how and when they want: either instant streaming, download to rent or download to own, so you can watch when you aren’t connected to the internet.

In addition, Microsoft today confirmed the next generation of its portable media player, Zune HD. Available in the U.S. only from this autumn, Zune HD is the first portable media player with built-in HD Radio receiver, HD video output capabilities, OLED touch screen, Wi-Fi and an internet browser.