A few months back, Microsoft revealed plans to debut a new TV service through Xbox Live, with news, sports and local channels. Comcast and Verizon Communications are among the providers that will funnel content through the new service, according to a Bloomberg News report last week.

Official details have been scarce up to this point, but an announcement is expected today. I promises to be an interesting move for Microsoft, adding to the breadth of Xbox Live, which already offers content from Hulu, Netflix and ESPN.

As highlighted by AllThingsD, one big question is whether users will need to have a cable television package from the involved providers to get the content via Xbox Live. In the case of ESPN on Xbox Live, for example, it’s possible to get sports content with just a broadband Internet account from the involved provider.

Another interesting question is whether the service will turn the Xbox 360 into a DVR, as suggested by the slide above, shown during Microsoft’s event at the E3 video-game convention, where plans for the service were first discussed.

WinRumors reports that the Xbox Live TV service could come as part of a new Xbox Live subscription level, dubbed “Diamond.”

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