It appears that Microsoft has been sending executives to talent agencies and production companies in Hollywood over the last few months seeking ideas for video programming for the Zune, its media player. The content may either appear on the Zune platform only, or will move elsewhere with Zune branding.

Richard Winn, director of entertainment development at Zune told Reuters: "What we would be looking to do with any form of original content is the added component that Zune could provide that iTunes or any competing service couldn't."

Their wanting to license some exclusive video content for the Zune may mean that Microsoft just wants to make some shows unavailable for the iPod which has no exclusive content whatsoever. The company already has exclusive Internet-only shows on MSN Video through its MSN Originals Program.

Rumor has it that Microsoft is actually trying to find a suitable substitute for Apple’s iPhone. However, Microsoft has denied that.

The company reported that two million Zune players had been sold since the product's launch in November 2006 while Apple sells about 3.5 million iPods every month. The difference is tremendously huge. The personalized multimedia content for the Zune player is currently being tested but it is said to succeed in developing the player’s social networking capabilities.

Apart from watching TV shows and playing games, a Zune user will also be able to download its favorite music related to the shows.

So Microsoft’s present challenge sounds like this: "The thing we've all been looking for is, 'What can we do that is a little more interesting than just looking at a piece of video?' “Winn said.