Microsoft has held talks with the former president and CEO of Rupert Murdoch's News Corporation, Peter Chernin, regarding an Xbox Live television channel.
At the talks, which took place on 12 April at the software giant's Redmond HQ, Microsoft is believed to have revealed it wanted to set up a television channel exclusively for the users of its gaming console's online network, in order to take advantage of the increasing popularity of online content and video streaming.
Industry experts say that Hollywood studios are desperate to get a slice of the roaring online video streaming market, and are trying to find more ways to make money from movies to supplement box office takings, DVD and merchandise sales.
Details of the talks were revealed to popular financial new site Bloomberg.com by "two people with knowledge of the proposal".
One source reported that Chernin suggested Microsoft should raise the Xbox network subscription fee by $1 or $2 and offer users TV content including original shows and re-runs.
When questioned about a possible TV channel deal with the software giant, however, Chernin's publicist Allan Mayer said that "Peter is talking to lots of people about lots of ideas in the digital space."