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JaggedSac said:
MS announced their Netflix partnership at E3 2008. This is very similar.

No, it's not.

This is talking about streaming live TV on the internet.  Something that I don't believe any company in the US currently does.

I could see them announcing a partnership to bring Hulu or another similar service to XBox Live.  But not live TV.

EDIT: "GameFocus has learned from a trusted source that Microsoft is ready to announce the arrival of a live television broadcasting service to the Xbox 360 platform by 2011."