Xbox 360 Getting IPTV Service With AT&T’s U-verse? [Reports Suggest Xbox 360 Will Get IPTV Service Only For AT&T U-verse Subscribers]

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While many people are making the shift towards the digital distribution of content, a large portion of them retain cable subscriptions. However, with so much content getting put online alongside its broadcast counterparts it’s almost become a given that the former will one day out phase the latter.

Hulu is a prime example of a service that can very well one day phase out traditional cable and satellite broadcasts. With content from networks like Fox, ABC and NBC (just to name a few) Hulu gives consumers without cable or satellite an option to consume great content with some episodes even being free but ad-based and more available through a reasonable subscription. However, since cable broadcast remains a valuable asset to the networks, Hulu usually receives new content after it airs on cable and satellite – something that prevents it from being a fully capable cable/satellite alternative.

However, if IPTV were to ever come to the masses it could prove very successful against traditional cable/satellite broadcasts. In fact, Microsoft’s Xbox 360 video game console has long been rumored to be getting an update that would include IPTV functionality. Unfortunately, the plan has not been talked about for quite some time, but today we have rumors that it may be getting very real very soon.

According to these reports, a leaked internal screen shot suggests that AT&T will be teaming up with Microsoft to offer U-verse IPTV access through the Xbox 360 to existing customers. This would essentially turn the Xbox 360 into a cable set-top box, kind of like what your cable provider would give you. Of course, seeing how you actually have to be a U-verse subscriber for this chances are Hulu will remain unscathed as you’re still going to need to cable rates for access.

If this is something you’re interested in, you will be happy to hear that our sources also tell us that the Xbox 360 IPTV/U-verse service is already undergoing testing and could possibly see a release before the end of the year.

However, until Microsoft or AT&T come forth to say anything we’re just going to have to mark this one as another rumor.