The new service launches with more than 500 films and programmes available to anyone visiting the Tiscali web site (www.tiscali.co.uk/moviesnow). Users can rent or download titles to own with prices starting at $2 (£1) and films costing $6-$7 (£3-£3.50).
Titles offered include United 93, Children Of Men, Bridget Jones's Diary and 8 Mile. Sporting events on offer include the British Open Golf tournament and natural history programmes from National Geographic.
Downloads to rent are valid for a 24- or 48-hour window during a seven-day period.
Mark Livingstone, president of Arts Alliance Media, said: 'The Tiscali portal has unparalleled reach and the new service will bring the benefits and freedom of on-demand movies to an even greater number of people.'
In other AAM news, the company will deliver new online video content services to portable media player company ARCHOS and its WiFi player users.