According to the Australian newspaper, the network has rejected the joint-venture digital media model favoured by the Nine and Ten networks.
SmartHouse has been told that Samsung and LG could well end up with the application running on their new Smart TVs.
Ten chief digital officer Rebekah Horne told the Australian: "This is the start of an ongoing strategy, where we continue to release products and push out into different platforms where audiences are aggregating." She added: "I guess the simplest analogy is fish where the fish are."
The app gives Xbox Gold Live users instant access to a library of more than 25 programs, including NCIS, Vegas,Offspring, The Graham Norton Show, Bondi Vet and Bondi Rescue.
Users will also get updates from Ten's News At Five and Late News as stories break, expanding the reach of Ten's online catch-up viewing service, which has notched up 20 million video views to date this year.
"Xbox One takes the platform from hard-core gaming to an entertainment device for the entire household; from bedroom to lounge," Ms Horne said.
"The numbers on Xbox in terms of internet connectivity and other types of content distinct from gaming are reasonably significant, which suggests they are open to entertainment experiences beyond gaming."
Over the weekend, Microsoft announced it will shut down its MSN TV platform, the connected set-top box that married a TV with online. The service that was never launched in Australia was launched in 1997, after Microsoft bough the service for over $450M.
The box, which came bundled with a keyboard and remote control, allowed users subscription-based access to the web, emails, Messenger and to view photos, listen to the radio and more.
In a brief announcement on the MSN TV homepage, Microsoft wrote: "The MSN TV service will be officially closing on September 30, 2013. If you are an MSN TV subscriber, click here to read the Closure FAQ on what you should do before the service ends. You will also receive an email and letter providing more information."
Current users can save their MSN TV data by transferring it to SkyDrive.