Early talks with TV networks productive, numerous options being considered.
By Mike Sharkey Nov 29, 2010
Netflix and ESPN are here and a myriad of network programming is on the way through Hulu Plus, but according to a new report, 
Microsoft has much bigger plans for TV on the Xbox 360: an entirely new subscription-based television service. Citing two unnamed sources "familiar with the plans," Reuters reports that Microsoft has already held early talks with various TV networks and proposed a range of possibilities, including a "virtual cable operator." "Microsoft is also exploring the possibility of creating content silos and selling more individual channels directly such as an HBO or Showtime," Reuters reports. "These people said a service may not arrive for another 12 months, but early discussions have been productive." The major hurdle Microsoft must get over is traditional cable TV's lucrative dual revenue stream model, where networks are paid fees by cable operators and also earn money through selling advertising. According to Reuters' sources, Microsoft is trying to price and package a plan that would create a similar dual revenue stream.
Read more here –>xbox360.gamespy.com
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