The software giant says the sale -- for slightly less than $200 million, according to a person familiar with the deal -- will allow it to focus its TV efforts on Xbox, which will be updated this year.
Market research firm ABI Research is forecasting a 32 percent increase in IPTV subscribers in the next five years.
Movie studios and television networks are still the ones calling the shots, despite the spread of the Net-connected TV revolution.
Microsoft has virtualized its Mediaroom IPTV server software to make it less expensive for smaller service providers to deploy its technology.
Some lucky Canadian residents will be the first to get streaming TV through their Xbox 360 with a new service from telecommunications provider Telus.
The deal with Guangzhou Digital Media Group also marks the first time Microsoft's Mediaroom service is being used to do IPTV over a cable network.
Consumers want their video content free to go anywhere, at any time, to any device. So, what's the holdup? In this year's Next Big Thing Supersession, CNET will gathers industry leaders to find out.
We love the idea that TV might be delivered via the Internet one day. Project Canvas promises to make this possible and frankly, we can't wait
IPTV: Who needs cable?
Some within IPTV sector hope EchoStar's $380 million purchase of SlingMedia is only the first big deal.