Xbox Live

An article over on the NYT states that Microsoft wants to take on Cable channels.

The company is in talk with Walt Disney Company about a programming deal with ESPN. ESPN could provide live streams of sporting events for a per-subscriber fee. You didn’t think you’d get this for free did you? Microsoft may also create some interactive games in association with ESPN.

“For both of the big guys, it’s about extending the value of the hardware platform,” said Mike McGuire, a vice president for the research firm Gartner, referring to Microsoft and Sony. “The devices are hooked to TVs and have broadband connections, and there are more and more opportunities to license movies and TV shows and deliver them in over-the-top models.”

Microsoft doesn’t release stats on Xbox Live members and users that are playing games versus watching video. But they do have a rather large audience and Netflix on the 360 has been very popular.

“I don’t think there’s a real difference between a game and ‘Lost.’ Or a game and ‘American Idol.’ They’re all ways we spend our leisure time,” Mr. Whitten said. Over time, he predicted, “these narrow swim lanes — games, music, movies, etc. — will dissolve.”

Hey Microsoft, I hear Conan might be available for a show…