Report - ESPN in talks to stream sports to 360

The NYT's reporting that Microsoft and Disney are in talks to being streamed ESPN sports event to Live.

Here's the good bit:

Microsoft has held in-depth discussions with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.

For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. Microsoft could also create some interactive games in association with ESPN, the people said, although a deal has not yet been struck.

The move would be a major one for Microsoft in the US, adding another video facet to its console.

Xbox 360 already enjoys discless Netflix access in America, although PS3 gained a disc-based version last year. Netflix is landing on Wii this spring.

“For both of the big guys, it’s about extending the value of the hardware platform,” said Mike McGuire, a vice president for the research firm Gartner, referring to Microsoft and Sony.

“The devices are hooked to TVs and have broadband connections, and there are more and more opportunities to license movies and TV shows and deliver them in over-the-top models.”

Lots more through there.