Xbox Live is a service that offers more than just online connectivity, with services like Netflix and Hulu offering TV programs and movies. Microsoft is set to extend its reach with the recently revealed Xbox Live TV. One may think that it's a direct move in competition with the cable companies, but, on the contrary, Microsoft's new service is in line to enhance those services, rather than compete with them.
Speaking with IndustryGamers, Dennis Durkin, CFO of Interactive Entertainment Business at Microsoft, said that they have no intentions to compete with cable companies.
"You may be familiar with some of the work we're doing in the U.K. with BSkyB and Canal+ in France and we also have a partnership with Foxtel in Austrailia. So these are all pay-TV operators," said Durkin. "And basically, we're partner friendly as it relates to their business model. We're not trying to compete with them. We're trying to enhance the services that they offer for their customers."
Durkin also noted that Xbox Live provides enhancements and things that these companies can't do in terms of the social space, as well as things that relate to Microsoft's Kinect tech, achievements and other such "connective tissue" among its users.
"What we found is, by having reinforcing business models and working with them... so you're a BSkyB customer in the U.K. and an Xbox Live customer, we'll both support each other's businesses in very positive ways. And we'll continue to do that. So we're very partner friendly as it relates to that."