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By John Borland, 9 February 2004 09:30

NEWS Microsoft and the Walt Disney empire will today announce that they have struck a deal to develop digital content and delivery systems.

The announcement of the deal is short on detail and merely indicates that the two companies will be working together on a range of topics from high-definition film to digital rights management.

It is the latter, the 'how to make sure that we make the money' part, that holds the most interest for the two companies. Disney is taking on a non-exclusive licence to use Microsoft's Windows Media digital rights management software.

The two companies said that they would work together to develop and deliver secure content and to develop technology that lets different devices throughout the home access digitial entertainment files.

And Disney's content will go a long way to making the Microsoft Media Centre, launched last month, attractive. It is expected to appeal to families with small children who endlessly replay children's movies.

John Borland writes for CNET News.com.