Report: Cost to license content kills Microsoft TV

Microsoft (Nasdaq: MSFT), which has been working to put together a Microsoft TV virtual cable service for more than a year, reportedly has put the project on hold, stymied by the cost of licensing content.

Reuters, citing a senior media executive, said the Redmond, Wash.-based company had built and demonstrated a Microsoft TV service to potential programming partners. The service would have charged a monthly fee for programming and movies, including current TV episodes and live network programming.

But the cost of licensing the content was prohibitive, the exec said.

"They asked for rate cards but then said 'ooh ah, that's expensive,'" said the executive, who had been involved in the talks.

The company will, however, continue to grow its business of pushing programming across its Xbox game console to existing pay-TV customers.

For more:
- see this Reuters article

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