Xbox Live price hike to fund TV channel

Microsoft is allegedly in discussions with Peter Chernin, the former president of News Corp, to launch an Xbox 360-dedicated TV channel.

Controversially, however, Chernin wants Microsoft to raise the monthly price of a subscription to Xbox Live by between $1 and $2 to fund the venture.

Bloomberg reports that the channel would be jointly owned by Microsoft and Chernin and would be exclusive to subscribers of the gaming network.

Were it to materialise, the move would mark a significant step forward for the growing VOD movement that has seen video rental and sales claim an ever growing chunk of revenues on all three current-gen home consoles.