Microsoft made some interesting announcements at the Consumer Electronics Show. British Telecom will soon be offering consumers the choice of using their Xbox 360 as a set-top box for IPTV. IPTV is a system where a digital television service is delivered by using Internet Protocol over a network infrastructure. IPTV does have some potential limitations in terms of packet loss and delays but it can offer a number of features including video on demand, web access and telephony (VOIP).
Pairing IPTV with the Xbox is a brilliant strategy.
Microsoft also announced deals with ABC and Disney to distribute hi-def content to the Xbox.
It is inevitable that traditional broadcasting will be replaced by on demand digital content. Hence the remarkable popularity of YouTube and the growth in DVD sales and downloads of television shows.
Microsoft looks like it is in a great position to integrate digital content such as video, music, photos, and gaming, all on one platform. All at home.
I wonder how Rogers and Bell will respond?
Bell has already partnered with Microsoft to bring MediaRoom (http://www.microsoftmediaroom.com/#) to market. They are currently upgrading their network to facilitate this.