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Gigaom

Microsoft(s msft) is working on producing premium interactive TV shows that will launch on the company’s Xbox Live service by the end of the year, a top executive said Monday at All Things Digital’s Dive into Media conference in Dana Point, California.

Entertainment and digital media President Nancy Tellem, who worked for CBS before arriving to head Microsoft’s Los Angeles studios, said she is working on ways to make shows more interactive by tapping into technology like Kinect.

However, the goal wasn’t to use interactivity for interativity’s sake, she said, adding: “It has to be organic and a natural extension of what we are doing.” Examples could include live shows, or children’s programming where kids can interact with the characters on screen.

Tellem declined to specify how much Microsoft is spending on its original content play. “We are certainly looking at a very robust content production schedule,” she said, adding…

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