Gates and Murdoch team up for video-on-demand

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.