Microsoft reportedly puts online-based TV plans on hold

Microsoft has apparently been working for the past few months on its own online video subscription service that would have been similar to Netflix. However, those plans have now been placed on hold, according to a new report from Reuters.

The story, which cites unnamed sources, claims that Microsoft has backed away from those plans after the licensing costs for obtaining movies and TV shows for the service were higher than expected. Officially, a Microsoft spokesperson would not comment on the report.

The story claims that Microsoft not only planned to offer older movies and TV shows on its service for a regular monthly fee, but also current episodes of TV shows and streaming live feeds from TV networks. It was the licensing fees for this content which caused Microsoft's online video ideas to cost much more than originally anticipated.

One unnamed source said that while Microsoft might have put their current plans on hold, he was hopeful that the company will revisit those ideas in the near future, saying, "It doesn't mean they won't be back in another iteration. We'll have to wait and see."

Microsoft has been offering more video content via its Xbox 360 console in the past couple of months, including adding apps for YouTube, MSN, DailyMotion, UFC and more. It plans to add support for HBOGO, Crackle and more apps in 2012.

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sounds like another story of greedy content providers struggling to maintain a stranglehold and then wondering why their sales and profits are going down because no one buys their stuff.

macrosslover said,
sounds like another story of greedy content providers struggling to maintain a stranglehold and then wondering why their sales and profits are going down because no one buys their stuff.

Yup. Pump out crap, people will pay crap for it.

So, effectively Zune Pass for video.

That would cause a storm of trouble from Microsoft's IPTV (aka Mediaroom) customers.

As an employee of such a company, this makes me happy.

Why can't every darn channel just have an IPTV station, something that doesn't require a browser, or a box, just have every TV be internet enabled, and you can input what channels you want via a IPTV station you subscribe to by IP or selecting off a list.... pay for the channels you want get it through the internet, still the real full flat out TV channel, not some browser enabled low quality video channel... but a true tv station through the internet straight to your tv or computer if you choose

neufuse said,
Why can't every darn channel just have an IPTV station, something that doesn't require a browser, or a box, just have every TV be internet enabled, and you can input what channels you want via a IPTV station you subscribe to by IP or selecting off a list.... pay for the channels you want get it through the internet, still the real full flat out TV channel, not some browser enabled low quality video channel... but a true tv station through the internet straight to your tv or computer if you choose

oh wait I know why they would never do this, they can't hide the cost of their channels anymore!..... with cable providers they can hide their true cost in bundled sets of channels with other networks and you never see what you are being charged for a channel... if you found out you paid $5 per month for disney in your cable bill and never watched it you'd drop it (the channel) in a heart beat if you could...