Microsoft has revealed that it is in discussions with the BBC, aimed at allowing Xbox Live users to watch BBC programmes on their consoles.
Reports suggest that HD (high definition) BBC TV content could be offered to Xbox users. The BBC and Microsoft signed an agreement to look into joint digital projects in 2006.
Microsoft's Ross Honey said: "We are working diligently on multiple fronts to make it happen," Honey said. "The BBC is a great content provider."