Microsoft and a former News Corp. President were recently in discussions to create a TV channel for the Xbox 360, say some anonymous insiders. The proposal said that subscribers would receive the new programming, which would feature new content along with reruns, all designed to target a young male audience.

“The new service would be funded by a $1 or $2 increase to the Xbox Live Gold subscription fee. The new channel would be owned by both the executive, Peter Chernin, and Microsoft. Peter is talking to lots of people about lots of ideas in the digital space,” said Chernin’s publicist Allan Mayer.

There’s no telling if this will ever come to fruition, but it’s clear that Microsoft’s intentions with the Xbox have always gone beyond gaming; they want to own the living room. An ad supported Xbox Live TV channel certainly would be interesting for brand marketers.

Source: Bloomberg {link no longer active}