Microsoft Corp has held talks with media companies to license TV networks for a new online pay-television subscription service through devices such as its Xbox video game console, two people familiar with the plans told Reuters.
The software giant's possible push into the television business comes as Google Inc, Apple Inc and Netflix have jostled for a seat at the table of television's future - a main topic of discussion at the Reuters Global Media Summit held last week.
The maker of the Windows operating system has proposed a range of possibilities in these early talks including creating a "virtual cable operator" delivered over the Internet for which users pay a monthly fee.
Other options include using the Xbox to authenticate existing cable subscribers to watch shows with enhanced interactivity similar to how pay TV operators have sought to do over the Web, said these people.