While Microsoft just won an award for their Xbox 360 TV setup at CES, reports are now that the company has put the subscription service for TV shows and movies on hold, according to people familiar with the discussions. Licensing cost were apparently to high for the model Microsoft wanted.
“They built Microsoft TV, they demoed it for us, they asked for rate cards but then said ‘ooh ah, that’s expensive,'” said one anonymous senior media executive connected to the talks.
While Microsoft wanted to offer more current shows than services like Netflix does, it wasn’t completely feasible cost-wise and the company will simply continue to work directly with cable/satellite providers. “It doesn’t mean they won’t be back in another iteration,” said the senior media executive. “We’ll have to wait and see.”