Microsoft places web TV service on hold

Microsoft has placed its plans for a web TV and movie service on hold.

Sources close to the Xbox 360 firm revealed that the project was halted due to costly licensing demands from media companies, Reuters reports.

"They built Microsoft TV, they demoed it for us, they asked for rate cards but then said 'ooh ah, that's expensive'," a media executive told the news service.

Microsoft TV aimed to provide a rival service to Netflix, with voice and motion control support for changing channels and browsing menus. However, the decision to include current shows and live programming drove costs beyond the planned business model.

Microsoft remains in talks with television companies, though it is thought that the negotiations are focused around bringing content via its Xbox 360 console to existing cable subscribers.

The report notes that Microsoft is likely to resume its plans for a web TV service at a later date.

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