Microsoft is reportedly in talks with Comcast and Verizon for partnerships to stream traditional cable TV directly through the Xbox 360 console. The upcoming service was originally thought to be a threat to other video streaming services such as Netflix as well as to cable TV, but now it looks like Microsoft will be seeking cable TV as allies instead.
Plans for live Xbox TV were first hinted at during E3 2011. At the time, Microsoft revealed that it was partnering with several content providers to stream live TV, but did not confirm who those partners would be and whether the service would be entirely internet-based or if it would work with traditional cable providers.
Now, according to sources of DigiDay, Microsoft is seeking partnerships with Comcast and Verizon, with imminent deals that could go live within a month. Working with instead of against cable providers will help ensure larger selection of content and would allow Xbox 360 TV users to access cable subscriptions through Comcast or Verizon's FiOS service without requiring an additional set-top box. This could also help the cable providers tap into a new demographic.