Filed under: Deals, Consumer experience, Competitive strategy, Microsoft (MSFT), Walt Disney (DIS), CBS Corp ‘B’ (CBS)
Microsoft (NSADAQ: MSFT) has cut deals [subscription required] with NBC, CBS (NYSE: CBS), Disney (NYSE: DIS) and a number of other media companies to use their video content on its Xbox Live and MSN services.
According to The Wall Street Journal, “under the agreements, Disney, MGM and Showtime will contribute programming to Xbox Live, an on the internet service with about 10 million subscribers that’s primarily used for playing videogames.”
Microsoft may be getting a great deal of content, but the question remains whether people would want to watch content through a video game platform, no matter what other features it has. At this point, the American living room is wired with satellite and cable VOD, DVRs, video game platforms and set-top boxes from companies like Amazon (NASDAQ: AMZN). All of this clutter means that no one company is prone to be able to stand out as a core provider of entertainment services.
It is a good thing that the Xbox can be used for playing Halo 3. It is not likely, however, to become a core video viewing device. The consumer won’t be able to find it in the pile of other devices.
Douglas A. McIntyre is an editor at 247wallst.com.
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