We've been hearing rumors about Microsoft's plans to offer TV service through the Xbox 360 for a while now. However, it appears that those plans have been put on hold. Reuters is reporting that according to "people familiar with the discussions," Microsoft is currently stuck in a holding pattern.
Apparently, Microsoft built an infrastructure for television service, but when they found out how much it would cost to deliver currently broadcast-exclusive content, they stopped negotiations. However, that doesn't mean the plans have been dismissed. The Xbox 360 does have other avenues for television broacasting, such as its upcoming HBO app.
This is actually really disapointing. I can't remember the article but someone pointed out the problem with piracy has nothing to do with wanting to pirate, it is wanting to get the media with little effort and at a reasonable price. Netflix proves this out.