They hope to bring faster and more interactive television services than currently provided by cable and satellite providers. Several stumbling blocks are touted merely as "growing pains" include details like picture in picture and high definition solutions via the stream. These high dollar contracts are with major telecommunications firms so that their service receives the utmost attention from the network backbones. In preparation, companies like AT&T and Verizon are spending millions of dollars laying fiber optics straight to customer's doorsteps.
Microsoft claims last year, three million subscribers in their test demographic brought in as much as $400 million in revenue. Their hopes are to receive as many as 49 million subscribers generating $13 billion by 2010. Of course, this isn't their only source of income. Genuine Microsoft servers will need to be deployed to provide the streams for the telecommunication companies, thereby generating even more money for the conglomerate. Just imagine a world in the very near future where even your television can get a blue screen of death.
Source
Reuters