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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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