Xbox were apparently working with different content providers in order to release an Xbox TV service according to a report from Reuters. Microsoft has a plans for the service and deals were ready to be signed but they pulled out of the deal once they tallied up licensing costs.

“They built Microsoft TV, they demoed it for us, they asked for rate cards but then said ‘ooh ah, that’s expensive,’” an unnamed senior media executive said. “It doesn’t mean they won’t be back in another iteration. We’ll have to wait and see.”

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