Microsoft Puts Web TV Plans On Hold

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You might have to wait a bit longer for that Microsoft Web TV program, but at least there’s still Netflix.

Reuters is reporting that inside sources have told them that Microsoft has put their long talked about Web TV program on hold. The program would essentially be Netflix but also give viewers access to live programming and currently airing television series. They reported that Microsoft pulled out after realizing that the licensing costs were too high.

"They built Microsoft TV, they demoed it for us, they asked for rate cards but then said 'ooh ah, that's expensive,'" one senior media executive who had been involved in the talks said.

Early versions of the service featured Kinect-like functionality that let users change channels with voice and motion control.

Microsoft is still bringing video and news content through their Xbox 360 console. They announced at CES that News Corp would be bringing Fox Broadcast, Fox News, IGN and The Wall Street Journal to their Xbox Live service.

Media company sources are hoping that Microsoft will come back to negotiate content deals later as the proposed service would be a money maker for all parties involved, especially the studios.

In a statement to Joystiq, Microsoft had this to say on the supposed deal breakdown:

"We don't comment on rumors and speculation. Microsoft is committed to working with the world's leading TV and entertainment providers to bring their offerings to Xbox and transform the TV experience with the power of Kinect. We are continuing to launch the more than 40 new entertainment partners we have already announced, including a wide range of live and on-demand TV on Xbox. Moving forward, you can expect to see more of the world's leading entertainment providers coming to Xbox."

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