Another potential rival to cable could be in the works with reports that Microsoft is negotiating with Walt Disney in regard to streaming ESPN content over the Internet to Xbox owners.
The New York Times said in a story this morning that the two sides were in discussions over the possibility of a paid service that could stream live sporting events to Xbox users, similar to the service that is offered over the Internet via ESPN360.com.
Microsoft could also develop interactive games with ESPN. According to the Times, a deal wasn’t imminent.
Currently, Xbox Live users can access Web sites such as Facebook or pay to have Netflix movies streamed to their gaming consoles.
Apple is also reportedly talking with CBS and Walt Disney in regard to selling TV shows and other video content out of its iTunes store.