The full-length downloads from 20th Century Fox, Sony Pictures Home Entertainment, Universal Pictures, and Warner Bros will range from $9.99 to $19.99 in price. 25 movies are available now, but AOL expects there to be hundreds in a few weeks.
As well as offering films, the service will deliver TV shows from 45 video-on-demand channels, including MTV, Nickelodeon and Comedy Central programs.
The downloads cans be viewed offline on Windows-based PCs and compatible portable devices.
AOL’s announcement follows the launch of MovieLink, CinemaNow and Guba. Hollywood studios are investing in these digital movies stores as a way to make money off the back of old titles. Sony Pictures Home Entertainment, has signed deals with CinemaNow and Movielink.