The BBC and Microsoft aren't exactly seeing eye-to-eye at the moment, with the British broadcaster unhappy with the way Microsoft charges users for much its online content.
The dispute is centred around BBC's iPlayer, a service that allows people in the UK to watch BBC programs from their computer, PS3 or Wii. There were also plans to include the iPlayer on the Xbox 360, but because Microsoft insisted on restricting access to the player to paying, Gold subscribers, the BBC are withholding it.
Why? Because the BBC can't charge the British public for access to BBC programs, as use of the iPlayer is already covered under the TV licence fee the Brits have to pay (Americans may wish to read this before continuing).
"Microsoft only wants to offer its users access to platforms it can charge for as this is the model it is pursuing," a BBC source told The Telegraph.
"This does not fit with the BBC's model and Microsoft will not budge at the moment. It is really frustrating for those involved on the BBC side who want to make sure iPlayer is rolled out on as many popular entertainment platforms as possible".
A more subdued, official statement from the BBC reads: "BBC iPlayer has been extremely successful on PS3 and we recently re-launched on Nintendo Wii, from which the public response has been fantastic. People clearly want the BBC iPlayer on their gaming consoles, and we don't think Xbox users are any different, so we've had discussions with Microsoft about bringing the service to the platform."
Xbox 360 iPlayer launch delayed indefinitely [The Telegraph]