According to an anonymous source of Reuters, Microsoft is no longer planning to a paid tv service to offer via Xbox Live. The license fees for the provision of recent tv programs were too high for the consolebouwer.
Reuters claims to be a director of a media company to have understood that Microsoft plans to have a paid tv service through Xbox Live to offer discontinued. “They built Microsoft TV, they let it see us, they asked for our fees and were shocked, then the price”, said the mediatopman. According to the source were the licensing fees that Microsoft would have to pay is so high that the business model of the service is no longer profitable. Microsoft would be the plans, therefore in the fridge.
Microsoft wanted to make Xbox Live a separate tv subscription offering, that Xbox Live Diamond was baptized. In contrast to Netflix, a service that greatly grew in 2011, Microsoft was planning to recent programs on offer, allowing the licensing costs for Microsoft later abandoned. Microsoft wanted to compete with existing cable companies.
According to the same source searches Microsoft still cooperation with tv providers, but in a slightly different way. The consolebouwer will now no longer kabelaars from the market pressures, but tv companies have a place on Xbox Live. It is, however, no longer to live tv. As Microsoft announced at CES in collaboration with media giant News Corp, so in the future apps of Fox Broadcast, Fox News, IGN and The Wall Street Journal in the Xbox dashboard.