BBC and Microsoft have apparently fallen out over the latter's wish to make the iPlayer feature available only for the Gold subscribers member of Xbox Live, something that the BBC says wouldn't be allowed.
Emma Barnett from The Telegraph says that the BBC's Future Media and Technology department has already warned Microsoft that only allowing the paid fraction of its members to have access to iPlayer content is "incompatible with the BBC’s public service remit."
Sources within the BBC have also confirmed that Microsoft does not want to change its position which means that the corporation was left with no other choice than to postpone the launch of the Xbox 360 until a compromise is found.
A spokesperson for Auntie said that “This does not fit with the BBC’s model and Microsoft will not budge at the moment. It is really frustrating for those involved on the BBC side who want to make sure iPlayer is rolled out on as many popular entertainment platforms as possible.”
The BBC argues that users are already paying for BBC content through the compulsory TV Licence fee. The PS3 and the Wii - amongst other platforms - are already running customised versions of the iPlayer video on demand service.
Microsoft has added more features to its gaming console - like access to Facebook and other social networking website - to gradually morph the Xbox 360 into a more multi-faceted media platform.
One of the other will need to make a big concession and step down. As it stands, the BBC has the upper hand since it is Microsoft which will be at a disadvantage as its rivals will be offering BBC content for free.