Microsoft is in talks with media companies to license TV networks for a new online pay-television subscription service through its Xbox and other devices reports the US press.

Apparently Microsoft envisages a “virtual cable operator” delivered online for a monthly subscription. However some reports reference an alternate plan that sees the company cooperate with cablecos allowing users to watch their existing packages with enhanced interactivity.

Microsoft is also exploring the possibility of creating content silos and selling more individual channels directly such as an HBO or Showtime. It already has ESPN on the XBox Live online service.

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