BBC iPlayer for Xbox 360 delayed indefinitely

Plans to launch the BBC iPlayer on Xbox 360 have stalled, according to a report by The Telegraph.

The dispute is centred around BBC's iPlayer, a service that allows people in the UK to watch BBC programs from their computer, PS3 or Wii. There were also plans to include the iPlayer on the Xbox 360, but because Microsoft insisted on restricting access to the player to paying, Gold subscribers, the BBC are withholding it.

"Microsoft only wants to offer its users access to platforms it can charge for as this is the model it is pursuing," a source close to the BBC said.

"This does not fit with the BBC's model and Microsoft will not budge at the moment. It is really frustrating for those involved on the BBC side who want to make sure iPlayer is rolled out on as many popular entertainment platforms as possible," said the source.

Microsoft declined to comment on the report.