Costs too much for exclusive content
Microsoft has been working on its own streaming TV plans of sorts that would feature exclusive content. Apparently, however, despite building out its Microsoft TV and Microsoft TV infrastructure to deliver this exclusive streaming content, plans are now in a holding pattern.
The reason boils down to cost. Microsoft was apparently more than a bit surprised at how much it actually costs to deliver exclusive broadcast content. Once they found out what kind of money it would take they have apparently decided (for the time being, at least) that they will work on partnerships with other providers to stream their content to the Xbox 360.
While Microsoft has issued a statement on the subject, it is nothing more than what we have told you here: they will continue to work with content providers and partner with them to get their content to the Xbox Live platform, but Microsoft does not comment on rumors and speculation. While we assume that you will continue to see more entertainment coming to the Xbox platform, we are not sure that it will be exclusive Microsoft-driven content till they can find a model to make it work for them.