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As the title of this particular thread is saying. Microsoft has dropped their plan for the television service because of high licensing costs. This particular service was for the feature voice and motion control for navigation and it can offer new content and live programming to the users for monthly fee. They are going to close this particular feature and they are planning to put their efforts on delivering the content through web on Xbox Live.
Already there are multiple established TV providers who are offering their service over Live. I think Microsoft should spend their money to create their own service and profit off to the existing one. I am not sure but they should do the same in the priority basis.
Microsoft is looking to have more profit revenue and direct line to all of the cable and none cable entertainment. As they have made the comment that next system which is about to release would be more as that of media hub ala PS3.
Same as that of Netflix the Microsoft service also allowed the users and the option for paying the monthly fee for the package of the programming from someone other than that of local cable or the satellite TV company. However as that of Netflix., Microsoft is looking to offer the current shows and live networks on the service which will make the higher cost proposition.
Personally I am ready to spend money to get such service. But it did not worked for everyone. I am hoping that Microsoft would provide some kind of agreement but I think it will be less attractive to the consumers. I am wondering that how all the online as well as streaming options would improve point where they are going to enough place for the replacement of the content.
According to me IPTV would set competition for Cable as well as companies. Also there will be some more benefits to get the same. Xbox 360 is having more streaming option than that of the PS3. If you wanted to have streaming content then xbox 360 would be the thing for you.