Nevermind that the Xbox 360 ws created to primarily play video games. Now it's used more for music and video apps. That's the word from Microsoft's Yusuf Mehdi, speaking with the LA Times:
What we're seeing is that people are turning on the Xbox to play games and then keeping it on afterwards to get other types of entertainment.
The story goes on to detail that the games (and more) are played an average of 84 hours a month on Xbox Live. For perspective, the average household watches roughly 150 hours of TV each month.
I don't have cable or satelite, so my entertainment is generally streamed through my consoles. With services like Netflix and Hulu Plus on the 360 and PS3, I think the trend will continue in a similar direction.
[Source]