Microsoft confirmed the recent rumors and announced a new streaming TV service for Xbox Live users today at its pre-E3 2011 keynote. They're promising a "new way to enjoy television" and now we know what that means. The Kinect and Bing-powered voice search that can pull in content from online source like Hulu, Netflix and Xbox Live Marketplace, will also work with live TV from IPTV partners. So far that list only includes Sky in the UK, Foxtel in Australia and Canal+ in France, but users there will be able to search across all the services and view them directly through the console itself.
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