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Microsoft Exploring Subscription-Based TV Service For Xbox 360

by Matt Bertz on Nov 29, 2010 at 08:00 AM

Xbox 360 owners may be able to abandon pricey cable providers like Comcast if Microsoft can wrangle enough support for its new subscription service.

According to Reuters, people familiar with the negotiations say Microsoft is in discussions with content providers to license TV channels for a new online pay service that could debut next year.

The subscription model is just one of the directions that Microsoft is exploring to further its greater cause of becoming the predominant living room platform. The Reuters report also mentions that Microsoft is examining the option of authenticating existing cable subscribers with the goal of offering enhanced interactivity via the 360 or Windows 7 platforms. Microsoft could also opt to add more channels like HBO or Showtime to is existing 360 dashboard like it recently did with ESPN.

The move shouldn't come as a surprise given that Microsoft has made continued attempts at taking over the living room. Eight years ago, the company debuted is Media Center operating system, which allowed PCs to function as TV tuners and DVRs. Three years ago, the company introduced an Xbox 360 IPTV initiative that turned the Xbox 360 into a set-top box via services like AT&T's U-Verse platform with the added benefit of Xbox Live community features.

The key to success will be rounding up a comprehensive list of content providers. As other online-based services like Hulu Plus, Google TV, and Apple TV have discovered, if you lack just one or two desired channels or live programming like sporting events, it's tough to compel large flocks of cable or satellite subscribers to cut the cord.

What's your take? Does this excite you or are you content with your current television provider?