Emerging Media Dynamics has published a new report titled Spotlight on Television 2.0 Leaders: Microsoft Corporation, in which it is estimated that Microsoft will reap the rewards of its early entry into the world of "TV 2.0".
The summary of the report notes that Microsoft is positioning itself "as a key player in the IP video realm." Emerging Media Dynamics expects the Xbox-based video business to grow rapidly, and could see combined revenue from the sale of TV shows and movies via Xbox Live of $92.25 million in 2007. This is expected to grow further each year though 2011, when cumulative revenue from the service could top $726 million.
Microsoft's video marketplace - only available in North America - offers a mix of TV shows and movies, available in standard definition and high definition. At the moment movies have been limited to rental only, whereas TV shows can be purchased to keep and played back at the user's pleasure.
There's no word on when the service will be rolled out in other territories, but together with its recent announcement to turn the Xbox 360 into an IPTV device, Microsoft looks to be in prime position to capitalise on the emergent technology.