A week after hints at CES that Microsoft and BT may be in talks to turn the Xbox into a set top box, a big name studio has given the BT IPTV its support.

BT Vision has signed a content deal with Disney-ABC International Television.

The deal means that BT Vision customers will have access to current and classic US TV series, including Lost, Desperate Housewives, Scrubs, Ugly Betty, Grey’s Anatomy, Ghost Whisperer and Criminal Minds, all produced by ABC Studios.

In fact, a total of 650 new episodes will be made available on demand to BT Vision customers, for rental in a post-DVD window.

Jim Brehm, senior vice president of sales for Disney-ABC International Television EMEA, said:

"We’re pleased to be building upon our established relationship with BT Vision, to bring some of the most talked-about shows on TV to subscribers. The flexibility of on-demand technology is ideal for viewers wanting to discover, catch up, or revisit with, these must-see series."

BT Vision customers can either rent Disney programming on a pay-per-view basis or get unlimited access to it as part of the £6 per month TV Pack subscription or the £14 Value Pack subscription which combines its TV, Music, Kids and Replay Packs.

BT Vision didn't seem to be gaining much momentum but the CES hint at a tie-up with Microsoft over offering an IPTV service in the UK through the Xbox 360 has already got bloggers excited.

This follows a deal with Sony, which sees the PSP used as a set top box.

This latest announcement comes just a day after Steve Jobs announced Apple TV 2.0, which UK customers will no doubt soon be grumbling about after Pocket-lint revealed in an exclusive story will get no price cut here in the UK.