On the upside, it sounds like MS is making a concerted effort to work with ISPs other than iiNet to offer unmetered Xbox content:
“We’re doing a lot of work with ISPs. Late last year we announced a partnership with iiNet whereby all Xbox content is unmetered on their plans. Increasingly we’re trying to work with ISPs to say, this is an active community, these are consumers who are downloading a lot of content, and we need to have a better solution for them here in this market.
“With any of these partnerships, we do need to work in consultation with each ISP, and each provider does work a bit differently. Since our video-on-demand announcement [at E3] , more ISPs are coming to us directly and saying ‘We want to understand how to best work with your platform so that consumers can have the best experience on our plans‘.”
Head on over to Kotaku to read the rest of the interview. From the sound of it, this could potentially be the best VOD service we’ve seen in Australia to date.