From businessweek.com:

While Felicia Day and her Web series The Guild may have scored a great deal for distribution on the Xbox and other Microsoft platforms--which involved promotion to a massive audience, a Sprint sponsorship, and allowed her to keep her intellectual property--other Web series creators may have trouble following in her footsteps.

We sat down with Ross Honey, Microsoft's general manager of global content acquisition and strategy in its media and entertainment group, earlier this week in Redmond, Wash., to talk about the kinds of content the company is looking for and how Web video plays into that. Honey's answers didn't make the Xbox Live sound like much of a Web content distribution opportunity. As he explained it, the process of cutting deals for Web series and securing and inserting ads in them is just too much hassle.
Full Story: businessweek.com