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.
Other options include allowing cable subscribers to use the Xbox to watch shows with more interactive functions. Viewers could, for instance, message with friends over the console while viewing their favorite shows.
Microsoft is also exploring the possibility of creating programing packages for customers, setting up a bundle of sports or children shows, for example, these people said.
In addition, it could sell more individual channels, such as an HBO or Showtime, directly to subscribers. It already has Walt Disney Co's ESPN on the Xbox Live online service.
These people said a service may not arrive for another 12 months, but early discussions have been productive.
Microsoft declined to comment. The people involved in the talks asked not to be identified as the discussions were confidential.
Source: Reuters: http://www.reuters.com/article/idUSTRE6AS2E120101129
In addition, it could sell more individual channels, such as an HBO or Showtime, directly to subscribers. It already has Walt Disney Co's ESPN on the Xbox Live online service.
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