The missing piece to the Apple-Google TV trifecta was Microsoft, but now no more: the software maker is rumored to be launching an Internet TV platform in a year's time.

Two sources "familiar with the situation" reportedly told Reuters that a Microsoft pay-television subscription service would allow people to view content through multiple Microsoft devices, like the Xbox. Microsoft has already tested the waters by adding live-streamed ESPN content to its Xbox Live 2010 update.

"We think the more competition the better, we will price and package it in such a way that we still make the dual revenue stream," a Microsoft employee reportedly told Reuters. "We could probably charge more for interactive advertising."

However, those hoping for a Microsoft TV reveal during Microsoft's CES 2011 keynote might have to wait. It would not likely be out for at least a year, the sources added.

The rumors circulate as the pay-TV industry grapples with revenue losses from what is known as "cord-cutting." As younger consumers take a more active approach to watching television, seeking video content rather than watching whatever is shown on their television sets, they are cutting cable subscriptions in droves and opting for free or low-cost IPTV options.

This led Netflix, which takes up 20 percent of America's downstream bandwidth, to to launch a $7.99 per month streaming-only subscription service. Hulu, owned by The Walt Disney Co., News Corp, and NBC Universal, also dropped the price of Hulu Plus to $7.99 from $9.99 per month.

Noting Microsoft's history of trying to combine TV with the Internet (like financing WebTV in 1996), Tim Bajarin, president of Creative Strategies, said the current timing was obviously better.

"While we still are not clear if people really want to surf the Web on their televisions, like what Google TV offers, we do know that the concept of tying Internet content to television content makes sense and needs to be flushed out properly, with a clean interface, good apps, very easy navigation," he said. "But no one has figured out what the killer app is. One missing component so far is video-on-demand."

Meanwhile D-Link's Boxee Box was added to shelves this month next to the Apple TV and Logitech's Revue with Google TV.

A spokesperson for Microsoft said the company would not comment on rumors or speculations.