No...it's pretty limited in that you can only play games or watch shows purchased through LeapFrog. They do have a lot of videos you can purchase, generally episodes of educational television shows, but I've never seen a movie listed.
I believe you can only view the shows purchased from LeapFrog. For example, one of the free download options when you first buy the device is a 35-minute show about frogs visiting the Letter Factory where they meet each letter of the alphabet and hear the sound it makes. (It teaches phonics.) I don't think you can load/watch other digital movie files purchased elsewhere though.
Sorry to respond so late. I don't believe movies can be viewed. There is a phonics type movie that comes with it and my daughter loves it. She also loves Cinderella and Tinkerbell and she enjoys the eBooks.