Microsoft and Apple Run Into Pricing Problems With Video Licensing

Microsoft (NASDAQ:MSFT) becomes the latest tech company to see its online video goals upset by the arduous provisions set by content owners, who are worried about disturbing cable and satellite service providers such as Time Warner (NYSE:TWC), DirecTV (NASDAQ:DTV), Dish Network (NASDAQ:DISH), and Comcast (NASDAQ:CMCSA).

According to Reuters, Microsoft halted plans to offer programming through Xbox after discovering license prices were too high.

Apple (NASDAQ:AAPL) is reportedly dealing with a similar issue. A source from Apple told USA Today that Apple is thinking of constructing a 42-inch or larger TV set.  The design chief Jony Ive has a slick 50-inch TV at his studio inside company headquarters. In line with Microsoft, Apple has also failed in its attempts to lock in a deal to offer top TV shows at individual prices.