Reuters is reporting that Microsoft has "held talks" with media execs about a variety of potential new video-subscription services involving Xbox, including the possibility of Microsoft becoming a "virtual cable operator" that would offer TV shows and networks through the game console on a subscription basis. The discussions are still in the "early" stages, Reuters (and its two unnamed sources) claim, with any possible new TV service from Microsoft at least a year away.
As for the details on the proposed service, well … they're pretty vague for now. Among the possibilities:
One scenario under consideration by Microsoft is to create a new TV service on its Xbox gaming console that would establish a "virtual cable operator." The service would charge a monthly fee for access through the Xbox to networks such as ABC, NBC, Fox, CBS, ESPN or CNN, according to two sources familiar with the plans.
The other scenario would be individual for-pay TV networks, like HBO and Showtime, or a "TV Everywhere"-type deal that would allow existing, "authenticated" cable subscribers to watch on-demand shows.
The ultimate plan, of course, would be Microsoft essentially creating its own "virtual" pay-TV service to compete with the likes of Comcast, Time Warner, DirecTV, and Verizon FiOS, with your Xbox 360 acting as your cable box.
That sounds enticing, and — technically speaking — there's nothing to prevent Microsoft from turning the Xbox into a DVR for its own pay-TV service. Cutting deals with the various TV networks and content providers is another matter, although at least one enthusiastic TV exec thinks "the more competition the better," according to Reuters.
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