ReadWriteWeb

If you thought cable companies were in a panic about the threat the Internet poses to their business model, think again. Rather than sit idly by as Web content makes its way to television screens via set top boxes and smart TVs, companies like Comcast will instead try to position their traditional offerings alongside that streaming content. How? By adding it to set-top boxes.

Specifically, Comcast and Verizon are talking with Microsoft about the possibility of including cable subscriptions via the Xbox 360, according to a report from Digiday. The tech giant's gaming console, which already streams content from sources like Netflix, Hulu Plus and others, could in effect become a cable box if Microsoft manages to strike a deal ahead of its upcoming release of Xbox TV.

Comcast sees the writing on the wall: cable-based TV will not survive the next decade. Its value is fast eroding because it can't compete with on-demand, Internet-delivered TV across all screens. Unlike their music counterparts, TV executives have pulled their heads out of the sand in time and are working hard to survive this monumental shift. To do so, however, they need to choose the right battles to fight.