Microsoft is working on a TV subscription service

Think Hulu, or something like Apple TV or even Google TV, but from Microsoft. There’s been rumblings about Microsoft making their own alternative, subscription-based TV service for the Xbox Live and your Xbox 360 for some time now, but new reports say that they’re working hard at it even now. 

Sources told Reuters that Microsoft is in talks with TV networks to put together content for this new offering. One scenario offered up by a couple of sources has MS creating a sort of virtual cable operator, charging customers a subscription fee to access networks content from outlets such as ABC, NBC, Fox, CBS, ESPN or CNN. There could even be separate program packages tailored to different needs. Individual premium channels, like HBO, could be sold to customers. Your Xbox 360 could add interactive functions to the mix, like messaging or viewing with friends. 

Microsoft won’t comment on this, but the sources say early discussions have been productive. These people say that we won’t see this new service for another year. 

Dale North