Microsoft wants to ensure that only those paying for Xbox Live Gold accounts can access extra content, including the recently launched Sky Player, for which users need a Gold subscription as well as a Sky subscription.

“This does not fit with the BBC’s model and Microsoft will not budge at the moment. It is really frustrating for those involved on the BBC side who want to make sure iPlayer is rolled out on as many popular entertainment platforms as possible,” said the source.

The BBC is unable to charge for access to iPlayer as it is already included in the licence fee.

“BBC iPlayer has been extremely successful on PS3 and we recently re-launched on Nintendo Wii, from which the public response has been fantastic.

People clearly want the BBC iPlayer on their gaming consoles, and we don’t think Xbox users are any different, so we’ve had discussions with Microsoft about bringing the service to the platform,” confirmed a BBC spokesperson.

The PS3 version of iPlayer counts for 10% of the viewing which is second behind PC.

Source