New York – Microsoft (NASD: MSFT) has held discussions with TV networks
on licensing programming for a new paid subscription service, Reuters reported,
citing two people familiar with the plans.

The talks have included a proposal
to create an online "virtual cable operator" system, where Microsoft
would collect a monthly fee from subscribers.

The company has also proffered
its Xbox 360 game console as a potential authentication device that could
provide existing cable subscribers with online access to their subscribed

Sources told Reuters that early discussions were
"productive," although such a service may be a year away from launch.


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