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Microsoft launches The Music Room, an interactive TV series on Xbox Live

A day ahead of its hotly anticipated Xbox event, Microsoft has announced a new interactive TV series entitled The Music Room, exclusively on Xbox Live.  As a part of Microsoft's drive to beef up Xbox's entertainment content …

Engadget Melissa Grey

Context & Ripple Effects

Xbox Live had been building an entertainment layer since its first TV and movie offerings in 2006, followed by a 2011 expansion to 40 entertainment services, live TV and Kinect controls. Microsoft also explored a dedicated music service in 2012, placing music alongside games as a strategic content category.

The Music Room turns that distribution strategy into an exclusive, interactive program. It fits the Xbox One positioning around games, television and entertainment, and arrives alongside confirmed plans for a Spielberg-produced Halo series and NFL agreements.

First-order effects

  • Xbox Live gains a proprietary music program that gives Microsoft a reason to market the service as an entertainment destination rather than only a game network.
  • The Music Room is limited to Xbox Live, making access to the program part of the value proposition for Xbox users and prospective subscribers.

Second-order effects

  • Microsoft’s TV, music and sports initiatives require Xbox Live’s interface and account system to carry a broader range of viewing behavior, not just game purchases and play.
  • Other entertainment providers on Xbox Live face a platform where Microsoft is also commissioning exclusive programming, raising the importance of placement and differentiation within the service.

Third-order effects

  • If Microsoft sustains exclusive programming across music, sports and Halo, the console business shifts further toward a bundled home-entertainment platform in which content access helps shape hardware and service loyalty.
  • The strategy places greater weight on Microsoft’s ability to balance third-party entertainment services with its own exclusives, since both depend on Xbox Live remaining an attractive distribution channel.

The trend: Xbox is evolving from a game-console network into a home-entertainment platform that uses exclusive programming to strengthen service loyalty.