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disolitude said:

IPTV is just one side of the coin. Its funny, Misteshine commented about watching linear TV at a later time and now youre referencing IP TV. Together they paint the full picture...

Its all just content, doesn't matter where it comes from. IP TV, cable, over the air, video apps...users don't care. The challenge is combining technology and presenting all these forms of content to user in a manner that they can consume what they want and not worry where its coming from. If Microsoft figure this out with the Xbox, Windows won't be their main product anymore.  

I understand. 

I just believe the long-game plan is an IPTV service.  It can do all those things the article talks about if it's also the IPTV service.  The problem right now is broadband providers cap services, and Microsoft doesn't have the relationship with content partners that it needs to establish a service.

MediaRoom was a lucrative side business for Microsoft.  They had at least 23% of the market, and it was expected to grow.  So why give that up, out of the blue?  Most likely because if Microsoft kept MediaRoom it would have an unfair advantage in positioning its own service in the future.  Critics would be able to say that any features it developed were developed in partnership with the very cable providers it was working behind the scenes to undermine.  Where as, with MediaRoom gone, there isn't any fear of impropriety.   Everything Ericcson does with MediaRoom and the collaborative efforts with cable/satellite providers won't benefit Microsoft. 

Had Microsoft still owned Mediaroom, than it could have easily developed features cable/satellite providers were wanting or needing, patenting those features it created, and improving them for its own benefit (i.e. its own service).  With that relationship now gone, Microsoft has no input on what features the cable/satellite box has, it just has to work with the features that do exist.

I don't think Microsoft has aims to start an IPTV service next year, but I do believe that is where the company is headed.  It can be the IPTV service provider, yet still allow the content owners to be the content owners and distributors (i.e. they have full control of their content and the advertising that goes with it).