Microsoft (NASDAQ: MSFT ) finally has released details regarding its plans to
transform the Xbox 360 game console into the cable television set-top box of the
future. Rumors began swirling about Microsofts television ambitions in late
2010. On Sept. 15, CEO Steve Ballmer demonstrated the technology itself , using
the Kinect device to voice search for shows to watch. It wasnt until Wednesday,
though, that Microsoft told the world which television companies and cable
providers were signed on to provide content and access on the new service. With
those in place, its clear that Microsoft has more than a shot at establishing a
strong television business. It might very well have found a way to finally unify
Internet-based streaming video businesses like Netflix (NASDAQ: NFLX ) and the
traditional cable/satellite television industry. First, heres who is on board
for the new television service. Cable providers Verizon (NYSE: VZ ) and Comcast
(NASDAQ: CMCSA ) are the first of the service providers to commit. While they
wont be providing unfettered cable access to existing subscribers, they will
provide access to their respective IPTV and Xfinity services akin to whats
offered on platforms like Apple s (NASDAQ: AAPL ) iPad. (The short version:
Limited cable service access.) Then there is the fleet of new premium and
non-premium television channels that will be available, including other Comcast
properties like Syfy, the science fiction television and movie channel, and Time
Warner s (NYSE: TWX ) subscription-based HBO Go service. At first glance, the
new Xbox TV service looks like more of an evolution of existing services on
Microsofts box than something brand new. The official list of partners on
Microsofts website is filled with video services like the Xbox version of Disney
s (NYSE: DIS ) ESPN, Netflix and AT&T s (NYSE: T ) video service. What is
remarkable, however, is the willingness of these companies to offer numerous
digital services side by side with traditional television channels.
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