Last year ESPN unveiled a new business model for their streaming ESPN 360 video services, that included striking exclusive deals with ISPs, who then offered the content to their subscribers. If your ISP doesn't pony up the money? You can either beg them to pay ESPN a wad of money, or switch providers (assuming you have a choice). The model is difficult for smaller ISPs to afford, impacts consumer choice, ramps up consumer costs, and generally turns the idea of open access to content on its head, by making your view of the Internet different depending on your ISP.

This week ESPN and Microsoft announced a new deal that will bring a flood of ESPN content to Xbox 360 subscribers. While the deal was heralded by some as a blow to traditional cable, ESPN has imposed restrictions on the deal that ensure it won't be (did you expect anything else?). Among those restrictions is the fact that users won't be able to access this content at all if they don't have an ISP that's paid ESPN for the privilege of offering ESPN 360. From ESPN's fine print:Fortunately ESPN's ISP partner list is rather large, though it doesn't make this model any more compelling, nor change the fact that those without a choice of ISPs will struggle to get ESPN content. Of course ESPN has constricted precisely what content Xbox users will get (absent is the NFL, which continues a proud tradition of being slow to adapt to broadband), and while cricket matches and other marginal fare are in great supply, more compelling fare is largely absent to ensure their broadband video offering never really competes with traditional TV.

The content is also only available to Xbox users who pay an annual fee for Xbox Live Gold.