Microsoft (MSFT) Attacks The Living Room Through The Back Door

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By Douglas A. McIntyre Published

Microsoft (MSFT) has been trying for years to get consumers to use its software to bridge the digital divide between their PCs and TV. The latest attempt is the company’s Media Center. There is little evidence that it has sold well.

Almost by accident, the world largest software company has discovered another conduit to the TV–the Xbox 360. Microsoft has launched a new service called Xbox LIVE Marketplace. The purpose of the new operation is to allow Xbox users to have access to movies and TV shows, some for free and others for a modest price. As one industry executive told The New York Times: “We need to find viewers wherever they are,” said Michele Ganeless, the executive vice president and general manager of Comedy Central. “Some of them are firing up their Xbox rather than their cable box. They have so many entertainment options. Being on Xbox is a perfect way for us to reach them in their own environment.”

Microsoft claims that revenue from the service is rising at double digits month over month, It also say that over 400,000 copies of an HDTV version of South Park where downloaded recently.

Big marketing dollars and sophisticated software could not help Microsoft in the home, but the Xbox has worked.

Better to be lucky than good.

Douglas A. McIntyre can be reached at [email protected].

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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