Rumor: Microsoft Pitched Xbox Live TV Channel [Former TV Exec Pushed TV Channel On Microsoft With Original Content and Reruns]

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As we reported earlier, Microsoft and Xbox Live are the darlings of the video gaming advertising industry. Sony is having trouble selling ads for PlayStation Home while Microsoft can’t sell enough ads for their Xbox Live dashboard. We’ve heard reports that Microsoft was looking to add more IPTV shows on Xbox Live, and now, they may be adding a whole “Xbox Live TV” channel to the service for an additional $1 to $2 a month.

Edge, a reputable British gaming magazine, is reporting that former News Corp. executive Peter Chernin met with Microsoft in Redmond a few days ago to pitch them on on the idea of a “Xbox Live TV Channel.” The IPTV channel will reportedly feature original programming, as well as reruns. (Reruns of what, they don’t say).

Chernin is now running a production company, according to the report, the XBL TV channel would be co-owned by both Chernin’s company and Microsoft (MSNBC, anybody?). Here’s the kicker, users would have to pay an addition $1 to $2 monthly fee to get access to the new TV channel.

As the article I linked to above said, Microsoft’s 1 vs. 100 interactive IPTV show is reportedly very popular, with advertisers lining up to buy ad time on the show. The most controversial thing about Mr. Chernin’s plan is the $1-$2 monthly fee. A lot of Xbox users are balking at the idea of paying even more, even for better content.

Edge’s report says that Microsoft is still considering the idea. When Joystiq contacted Microsoft, they had no comment. Mr. Chernin’s company said that he’s been pitching his digital TV channel idea to a lot of platforms, and didn’t want to comment on specifics.