Content Sourcing Too Pricey For Microsoft TV

Content is king, and Microsoft (NASDAQ:MSFT) found it’s also very expensive. The tech giant had been negotiating with various media companies to source programming for its Microsoft TV service, but has now decided to place the talks on hold, apparently because the cost of licensing the content was prohibitive.

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A media executive who had participated in the talks said, “They built Microsoft TV, they demoed it for us, they asked for rate cards but then said, “Ooh ah, that’s expensive.” Microsoft’s model, though similar to that of streaming video provider Netflix (NASDAQ:NFLX), intended to offer content that was current and included live networks. Unfortunately the cost of sourcing this was too high for its business model.

Like Microsoft, Apple, too, had been rumored to be on the hunt for TV channels and shows it could beam, a la carte, as a part of its ambitions for Apple (NASDAQ:AAPL) TV – unfortunately it could not work out suitable deals with content providers.

Clearly programming majors are reluctant to upset the apple cart opposite cable and satellite service providers and hence fear to tread in new, Internet-based territories for distribution of their content.

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