With Google TV venture floundering off, things do not seem to be going right for online TV, but this hasn't stopped Microsoft from
going ahead and holding talks with media companies for its new online pay-television subscription business. Microsoft is looking to stream media through various devices including its Xbox video game console. The company is considering various business models. One of the possibilities is that the company will act like "virtual cable operator", other possibility is to offer more interactive TV viewing over the web. Microsoft is already in collaboration with Disney's ESPN for its Xbox Live Online service.
Microsoft's interest in the TV business is not new. The company had earlier invested in MSN TV set-top box software, which did not prove to be much successful. Its other venture Web TV also did not garner much success. But the times have changed since then and the company might just get lucky this time. However, do not hold your breath for Microsoft TV just yet. The talks are in the initial stage and the company has refused to confirm or refute the rumor.