Having spent the last year trying to incorporate a service similar to Netflix and LOVEFiLM, Microsoft’s own subscription based service would have allowed users to fork out a monthly fee for a package of programmes as an alternative to other Live TV and On Demand Services.
People “in the know” confirmed that Microsoft had demoed a service that included a range of advanced features such as being able to change channels with voice and motion control.
A Senior Media Executive who had been involved in the talks quoted:
“They built Microsoft TV, they demoed it for us, they asked for rate cards but then said ‘ooh ah, that’s expensive,'”.
It’s also reported that Microsoft had been in intense talks with potential programming partners and was hoping to roll out the service for early 2012, but cancelled all their plans after deciding that the licensing costs were too high. Microsoft is still said to be working closely within the TV business to distribute shows over the internet, but now soley focusing on delivering programming via the Xbox console with partnered App’s services.