The Former boss of Rupert Murdochs News Corporation, Peter Chernin, has held talks with Microsoft about creating a global XBox TV Channel that will also deliver 3D and HD content.

The man credited with the success of the Fox Network in the USA met with Microsoft boss Steve Ballmer to discuss creating a dedicated TV channel for the Xbox 360 video game console.

BusinessWeek which is owned by Bloomberg said that the channel would be exclusive to subscribers of Microsoft’s Xbox Live video-game network. At the April 12 meeting, Chernin suggested raising Xbox Live’s monthly fee by $1 or $2 to add programming aimed at the online service’s young, male target audience, one person said.

The channel would be owned jointly by Chernin and Microsoft, said one of the people, and would offer reruns and original shows. Chernin’s proposal underscores Hollywood’s efforts to find new ways to convince viewers to pay for films and TV shows delivered on the Web.

“Peter is talking to lots of people about lots of ideas in the digital space,” said Allan Mayer, his publicist. Mayer wouldn’t comment on talks with Microsoft. Wayne Hickey, a spokesman for Microsoft, declined to comment.

Currently, Microsoft offers a range of downloadable and streaming content to the Xbox 360. The move would see Microsoft go up against the Sony Playstation Network which is set to be expanded in Australia in coming months.