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Microsoft's Xbox Live internet service, which recently lost one of its trump cards when rivals Sony (NYSE: SNE) and Nintendo matched its partnership with Netflix (NSDQ: NFLX), may soon fire back with a new content deal of its own. Microsoft (NSDQ: MSFT) "has held in-depth discussions" with Walt Disney Co. (NYSE: DIS) over a deal that would let Xbox 360 owners stream some live ESPN content directly on their consoles, the NYT reports.

When Barnes & Noble (NYSE: BKS) announced its Nook e-reader in October, the ability to pursue a dual in-store and online sales strategy appeared to be one of the clear advantages it might have over Amazon (NSDQ: AMZN). But, as we first reported then, the chain didn't plan to sell Nooks to go in all its stores for the 2009 holidays-and, as it turned out, the combination of demand and distribution issues kept the device from store shelves. Instead, most people who bought Nooks at B&N stores were placing online orders for delivery weeks or months into the future-not buying them for same-day use.

Forget the last 10 years of post-Napster industry annihilation - Warner Music Group (NYSE: WMG) is now seeing growing income from both music sales and music publishing - but only if you factor in overseas sales; the U.S. business is still in rewind...

"Blockbuster's stock is trading at under a dollar, its net losses are widening, and it's in the midst of closing nearly 1,000 stores-but on CNBC Thursday CEO Jim Keyes insisted that the company had a bright future in digital because of its strong brand. 'When you're driving down mainstreet and you see that Blockbuster (NYSE: BBI) brand you know it's the place to rent movies,' he said."

Gannett's television revenues are lagging behind estimates from the experts.