Microsoft is in talks with TV channels to establish subscription-based services on its Xbox console. Microsoft is making efforts with the companies to produce a new TV service with the Xbox which will create a virtual cable operator.  In this, users will have to pay a monthly fee for accessing cable and broadcast network services via the Xbox. The company may also sell individual channels directly to subscribers to get a subscription.

When TV will be available through Xbox, users will have a wide choice of programs, movies and shows. Broadcast and cable networks declared that it will welcome new opportunities so that it can reach viewers on the same time. In the meantime satellite and cable TV companies are worried as their market share may reduce.

In the meantime Google has initiated Google TV, a service which will allow users to access the web and its content. However, some of the cable companies and broadcast networks have blocked access through their TV sets. Apple has talked with programmers in the hope of initiating a  subscription TV plan of lower cost. Microsoft made a statement that it will discover a pay-TV service which will be available on devices which are web enabled, for example, Xbox 360 gaming console. Microsoft had succeeded in landing content from various major TV networks. It would have an enormous launching pad to initiate a new pay TV platform which will be termed as Xbox Live. In this subscription service, gamers already streamed TV shows and movies from Netflix that has reached over 25 million users.

Microsoft has already established the Xbox LIVE services in place of Xbox 360 game console. Therefore, the company requires being a virtual cable operator so that it can stream the TV contents straightly to the console. Microsoft also needs to get into individual channel packages for some of the selected channels such as Showtime and HBO. Microsoft has already acquired MSN TV and Web TV set-top box software under its custody so that it can push forward its virtual cable operators plan.