Microsoft wants to come out with TV services, aimed at cable, satellite and phone companies, Reuters reported, citing sources. The company has reportedly held talks with TV networks to create a new subscription-based TV service on its Xbox gaming console that would rival efforts by Google, Apple and Netflix, the sources said. Microsoft's latest explorations after investments in MSNBC and WebTV come as efforts to redefine living room entertainment have accelerated in the past year, with technology companies seeking to offer lower cost alternatives to expensive pay-TV subscriptions. 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.
