Hard on the heels of the expected announcement later today (Monday 6^th June) of an Apple TV service, US media is reporting ‘last minute negotiations’ with content owners in preparation for a full Xbox Live TV service announcement at the E3 games fest in Las Vegas later this week.

According to those reports the service is known inside Microsoft as the ‘virtual cable operator’ model and will be part of the Xbox Live Diamond service also due to be revealed this week.

Initially only for the US, the service would combine Mediaroom IPTV with Xbox Live.

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