UPDATE: As folks have pointed out, one way this did manifest itself is through the AT&T U-Verse program.
It's possible these and other details may be announed as soon as next week. Bloomberg sources claim Microsoft is in talks with "almost two dozen providers of music, sports, movies and TV shows in the US and Europe," and may include HBO, Crackle, Bravo, Syfy and others.
Microsoft has been talking about the idea of incorporating television into Xbox 360 for years. It's not a new concept, it's just taken the company longer than expected to close the deals making it possible.
iPTV (Internet Protocol television) was actually debuted at CES back in 2007. Making the technology work hasn't been the issue, it's been getting content providers on-board to make the access happen.
Maybe we're finally getting there.