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Microsoft wants to build a pay-TV subscription service to offer toXbox Live customers, according to a published report.
Citing two anonymous sources, the wire service, Reuters, reported today that Microsoft has spoken with media companies about licensing "TV networks."
The talks are in the early stages, according to the report, but some of Microsoft's proposals include selling individual channels directly, such as HBO or Showtime or "using Xbox to authenticate existing cable subscribers to watch shows with enhanced interactivity similar to how pay TV operators have sought to do over the Web," Reuters wrote.
A Microsoft spokesperson was not immediately available to comment.
It makes sense that Microsoft wants to expand Xbox Live's digital-video service. Much of the Web-TV sector is struggling to catch up to Netflix's streaming-video service. The popularity of Netflix's Watch Instantly offering is ballooning as consumers search for cheaper alternatives to traditional pay-TV services. It seems logical for Microsoft managers to look at Netflix's success on Xbox Live and ask whether they couldn't offer others the same opportunity to market to their customers or maybe cut out the middlemen all together.
The major studios and TV networks would likely offer a warm welcome to Microsoft.
Two years ago, when Xbox Live, the gaming and digital-media delivery service, was increasing in popularity, some of the major studios tried to encourage Microsoft to make a huge investment in its own Xbox download store and not offer Netflix's streaming rental service, two studio execs told CNET at the time.
The thinking then in Hollywood was that Microsoft would sell downloads of TV shows and films and be less of a rental service. Microsoft ended up partnering with Netflix anyway and the relationship was a huge hit for both companies. In addition to Netflix, Microsoft operates its own built-in movie marketplace that sells downloads and offers streaming video rentals.
More to come
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Citing two anonymous sources, the wire service, Reuters, reported today that Microsoft has spoken with media companies about licensing "TV networks."
The talks are in the early stages, according to the report, but some of Microsoft's proposals include selling individual channels directly, such as HBO or Showtime or "using Xbox to authenticate existing cable subscribers to watch shows with enhanced interactivity similar to how pay TV operators have sought to do over the Web," Reuters wrote.
A Microsoft spokesperson was not immediately available to comment.
It makes sense that Microsoft wants to expand Xbox Live's digital-video service. Much of the Web-TV sector is struggling to catch up to Netflix's streaming-video service. The popularity of Netflix's Watch Instantly offering is ballooning as consumers search for cheaper alternatives to traditional pay-TV services. It seems logical for Microsoft managers to look at Netflix's success on Xbox Live and ask whether they couldn't offer others the same opportunity to market to their customers or maybe cut out the middlemen all together.
The major studios and TV networks would likely offer a warm welcome to Microsoft.
Two years ago, when Xbox Live, the gaming and digital-media delivery service, was increasing in popularity, some of the major studios tried to encourage Microsoft to make a huge investment in its own Xbox download store and not offer Netflix's streaming rental service, two studio execs told CNET at the time.
The thinking then in Hollywood was that Microsoft would sell downloads of TV shows and films and be less of a rental service. Microsoft ended up partnering with Netflix anyway and the relationship was a huge hit for both companies. In addition to Netflix, Microsoft operates its own built-in movie marketplace that sells downloads and offers streaming video rentals.
More to come
Powered by WizardRSS | Best Membership Site Software