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Reuters has inside information suggesting that Microsoft is about to launch a video subscription service for the XBox 360. Nobody knows exactly how this will work yet and Microsoft has several options. The first one is to become a virtual cable operator and charge for bundles of channels. This is an established model that networks are familiar with. There’s also the possibility to create one app per channel, a little bit like what Roku does. Let’s not forget that Hulu+ is coming to an Xbox 360 near you as well.

At the very least, Microsoft will get what other platforms already have: apps like Hulu or Netflix (and a revenue cut). More importantly, how would *you* like the Xbox 360 video service to be?

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