DailyTech - Microsoft Puts Web TV Subscription Idea On Hold Due to Costs

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Internet Microsoft Puts Web TV Subscription Idea On Hold Due to Costs
Tiffany Kaiser - January 12, 2012 5:37 PM

7 comment(s) - last by Just Tom.. on Jan 15 at 9:02 AM

(Source: compixels.com)

Microsoft has decided to focus on programming packages for cable subscribers via Xbox

After taking a closer look at costs, Microsoft has decided to put its Netflix-like online subscription service on hold for now.

Ever since Netflix hit it big with its video streaming service, many have tried to follow suit with similar services. For instance, Amazon launched Amazon Prime in 2005, which offers a library of movies and TV shows that can be streamed to various devices over the Internet for an annual fee of $79.

While launching such a service is an ambitious effort, it can be expensive. For example, Netflix had to raise prices and change its plans last summer in order to pay for costly licensing rights from movie studios and television networks. In the first three months of 2011 alone, Netflix spent $192 million on streaming rights. It spent a total of $406 million in 2010, and costs are expected to jump to as high as $1.4 billion this year.

Microsoft's Web TV service is a little different than Netflix's model, but they seem to be alike in the cost department. In addition to offering a programming package to users for a monthly fee, Microsoft also wanted to provide current shows and live networks.

After talking to programming partners over the last year, Microsoft recently caught a glimpse of what it would cost to roll out its service and it turns out the addition of current shows and live networks put costs over the top.

Cable companies and program makers are likely offering their content for sky-high prices to either get a huge cut of the pie, or thwart potential Web partners all together in an effort to stay relevant.

While Microsoft is currently putting the idea on hold, it isn't giving up. Microsoft is still working with those in the TV industry to bring programming packages to existing cable subscribers via their Xbox systems.

Source: Reuters

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right

By sprockkets on 1/12/2012 7:37:04 PM , Rating: 1

So being able to watch over a MS gaming console vs. Netflix and on tv's, blu ray players, phones, tablets, set top boxes, computers, just about everything.

Tough decision.

RE: right

By Motoman on 1/12/2012 11:33:48 PM , Rating: 2

Maybe, maybe not.

If you already have an XBox...chances are it's going to be connected to your TV, so just there you go.

If you don't have an XBox, sure...maybe something else you have already supports Netflix - or you buy something that does.

I'd be mildly surprised if at some point it didn't roll out to any Windows device at all - if it ever happens at all.

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RE: right

By woody1 on 1/13/2012 9:46:48 AM , Rating: 2

I'm watching Netflix on an Xbox now, so, theoretically, if MS offered a better service, I might switch. Plus, there's nothing to say that MS couldn't cut deals with the other box makers, TV companies, etc., to offer their service on the other companies' hardware.

At any rate, seeing that MS is afraid to go into the business makes me value Netflix more. Lots of people are whining about the Netflix price increases, but it's still a great value. And if Netflix goes away, who's going to replace them?

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RE: right

By Dr of crap on 1/13/2012 10:43:02 AM , Rating: 2

I agree, $8 a month. What can you do with $8 anymore. But for that price I can stream to my TV. I admit there isn't much there, but it's fairly cheap.

But what is with the cost - $1.4B this year Netfix has to pony up. I guess it's just greed. Unless the cable companies are getting into the providers heads.

I just don't underastand why the providers don't see the future is, and the money to be made, in the ability to stream to you TV.

What happened to being able to get TV/movies on demand?
And I don't mean cable/dish service and then buying a movie. I mean searching through a list and picking the movie I want to watch and then have it instantly available to my TV. That was going to be the BIG thing a fe years ago, yet has not seen the light of day.

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It's still going! Geez Microsoft, get a clue!

By priusone on 1/13/2012 4:48:33 AM , Rating: 2

http://en.wikipedia.org/wiki/Web_TV

I thought Microsoft's Web TV closed down years ago.

The only question is, do I believe the references in Wikipedia, or do I blindly believe Tiffany Kaiser?

RE: It's still going! Geez Microsoft, get a clue!

By Just Tom on 1/15/2012 9:02:14 AM , Rating: 2

Perhaps you should click on the source link then? You hardly need to blindly believe Kaiser when she links the Reuters story.

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...

By gladiatorua on 1/13/2012 12:23:10 AM , Rating: 2

Waiting for Google to finance some big Web-series. Or setup some kind of media-branch to make high quality stuff for youtube.
It will definitely piss off TV-cartels.