Microsoft Zune TV

With the success of Apple's iPhone, bloggers and technology fans everywhere have been speculating about Microsoft's plans to compete in the cell phone industry. Those waiting for a Zune phone shouldn't hold their breath; Microsoft plans to bring its software and online store to television sets instead.

Looking at numbers from Zune and iPod sales, this could be a smart move for Microsoft. Apple brought in $3.5 billion last year with sales from its iTunes Store, while Microsoft only banked $85 million from Zune hardware, and music and video downloads combined.

The Zune Marketplace continues to be buried by the almighty Apple. As of May of last year, only two million Zunes were sold, compared to 200 million iPods and 18 million iPhones. A change in strategy from Microsoft could be a good thing for both the company and its consumers.

Rather than heading in the direction of a ZunePhone or other type of hardware, Microsoft will introduce the Zune Marketplace to more screens than one: the PC, phone, and TV. Analyst Matt Rosoff guesses that Microsoft will also eventually bring the Zune Marketplace to its gaming platform as well: the Xbox 360 Live service. This online and interactive service allows 28 million Xbox 360 owners the opportunity to download games and content, and even stream Netflix movies.

With all of these new and intriguing possibilities being thrown in the mix, most experts agree that Microsoft is unlikely to produce its own television box. Regardless, Microsoft's Marketplace could potentially thrive and find many new consumers across many different media platforms, offering serious competition for the iTunes Music Store.