It seems that Microsoft may be in talks with media companies to license TV shows and movies for a new streaming service. With the addition of ESPN to the Xbox 360 over Xbox Live Microsoft may be in a position to do the same for different content providers and charge a subscription fee for them separately. The idea is to better personalize content and only pay for what you want to watch instead of paying cable companies for all the channels you don’t watch. Microsoft is looking into duplicating what they have done with ESPN to include channels such as Showtime or HBO and possibly Disney.
Google TV and Netflix will be the services main competitors with Netflix already available on the Xbox 360. But what will happen to Netflix on the Xbox when this feature is released? I honestly welcome live TV on the Xbox as long as it is live otherwise I will still watch my favorite TV shows on Netflix which is now $7.99 for unlimited streaming.
More info: Yahoo