Big, BIG news for Xbox 360 owners – Microsoft has unveiled plans to expand Zune beyond the boundaries of the USA and onto Xbox LIVE in Europe this autumn.

Zune, in its new guise, is described as the ‘premium partner’ for Xbox LIVE Video Marketplace, and Microsoft is already promising that the launch will bring ‘an exciting catalogue of TV and films’ which users will be able to download to rent or download to own.

Beyond all that Microsoft has bigger, broader plans for the service, as MS’ Chris Stephenson corporately reveals:

“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. 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.”

In plainer English Mr. Stephenson means that Zune will be accessible via Xbox LIVE, mobile and PC platforms. Kind of like a multiplatform/multimedia iTunes with bells on, we guess. Although the ‘instant streaming’ that Zune also boasts will give the service a unique and very compelling advantage.

Zune will be fully demoed at next week’s E3 show. Meantime Microsoft has also announced a brand new Zune media player. Zune HD, as it is dubbed, ups the ante on iPod with a built-in HD Radio receiver, HD video output capabilities, OLED touch screen, Wi-Fi and an internet browser. Oh, and it looks totally sweet too. Alas there are no plans to release this outside the US for the time being. But fingers crossed…