Google and Microsoft putting content at the centre of their TV strategies

We’ve had two big announcements in two weeks – first Google announced it would be bringing Google Play movies, TV shows and music to Google TV, then on Monday Microsoft announced that it is launching a new music subscription service on Xbox, dubbed Xbox Music.

It’s a clear signal that the big technology platforms (Apple included) are putting content at the centre of their TV strategies. And rightly so; consumers turn on a television to be entertained. But what does it mean for the likes of Spotify, Netflix and Amazon for whom these platforms present a critical route to the consumer?

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Microsoft Xbox LIVE members spend an estimated $60 per year on content

Microsoft has just announced the launch of Xbox Music, but how important is content revenue to the Xbox business?

Total Xbox revenue is estimated at £8.3bn in 2011, which includes console sales, Xbox Kinect sales, membership to Xbox LIVE and revenue generated by Microsoft through content sales. Based on a statement in the annual report that “platform revenue grew $2.7bn or 48%”.

But how does this break down between the different components, and how much can be attributed to content?

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