British Telecom has joined with Microsoft in a deal which should bring IPTV to the Xbox 360 before the end of the year.
Under the terms of the agreement, only subscribers to BT will have access to the IPTV services, which Microsoft currently powers through BT Vision.
The contract builds on an existing close relationship between the two companies – BT Vision is currently delivered via Microsoft’s Mediaroom software.
By offering IPTV through a partnership with Microsoft, BT will be in a position to buy Xbox 360s direct from Microsoft. It could then provide the games console fully equipped for IPTV – eliminating the need for an additional set-top-box.
The deal with Microsoft is in line with BT’s strategy to target the online gaming market for its BT Total Broadband service.