Gates and Murdoch team up for video-on-demand

Microsoft and BSkyB get cosy at CES

Microsoft and BSkyB get cosy at CES

Microsoft head honcho Bill Gates has revealed the software giant is getting into bed with the Rupert Murdoch-owned BSkyB.

In his keynote at the Consumer Electronics Show (CES) in Las Vegas, Gates said the pair are to team up to offer video-on-demand (VoD) to Microsoft Media Center users.

"They've got over 8 million subscribers in the UK who will be able to do those downloads and use those great capabilities," Gates said.

The video-on-demand offerings will be available Sky's broadband customers, which the broadcaster acquired when it snapped up ISP Easynet for £211m, in order to find new outlets for its entertainment products.

Microsoft is also working with DirecTV, Murdoch's BSkyB equivalent in the US, on a similar scheme.