Minority Report, Lord of the Rings and Red Dragon could soon be available over the internet after the five major Hollywood studios signed a deal with Microsoft to launch an online movie service.

The film giants are keen to launch the service in an effort to combat growing piracy on the web and keep up with the changing demands of movie-lovers.

Some films can be found on the web even before they are released in cinemas, but the quality tends to be variable and download speeds slow.

Movielink.com, a consortium of MGM, Paramount, Sony, Universal and Warner Brothers, plans to launch in the US before the end of the year.

It will show films on a pay-per-view basis over the web and has signed a deal with Bill Gates' software giant to use its technology as the backbone of the system.

The studios are hoping that by launching an easy-to-use service that offers high quality downloads, users will be persuaded to pay to watch movies over the web rather than downloading inferior pirate copies. In time, they believe the service could replace video and DVD rental.

"Windows Media technology enables Movielink's customers to easily rent and view encrypted digital versions of movies on their computers. We are pleased to be working with a company committed to the high quality delivery of our valuable content," said the chief executive of Movielink, Jim Ramo.

Movielink will also be used as a marketing tool, offering users exclusive clips and trailers of upcoming films and emailing them with promotions and offers.

Microsoft has identified video and music downloads as a major growth area and has been investing heavily in the new version of its Windows Media Player and digital rights management software.

Top executives have also been touring the major studios and record companies to convince them of the scheme's potential.