But the thing is, no one is going to buy an XBOX One specifically for the purpose of watching movies and streaming TV services. They could also implement video game streaming into an "XBOX Stick", same way as they plan to do for Windows 10 PC's and tablets. An XBOX Stick would not feature any gaming with out an XBOX One as a "host". It would specifically cater to those who want to stream and access music, movies & TV shows. So it's not really competing with XBOX, it even gives owners of an XBOX One a reason to buy an XBOX Streaming Stick device.
For the last several years statistics have shown the Xbox 360/One are actually used more often for movies/streaming than gaming, by a decent margin. Yes many of those capabilities are available in other cheaper forms, but people don't like having to toggle inputs all the time. They want one seamless interface that does all of their media needs, including gaming. The 360 had everything including media center, now the Xbone has most of it but you can still get media center via pass-through from another device (like a 360 as I'm doing).
The TV issue isn't so much Microsoft, it's the fact that they fought a war and lost to the cable companies. The cable companies don't want to play ball, they want the revenue from forced rental of cable boxes/DVR for every TV in the house, instead of a streamlined centralized system where they can only charge you for the services, not the hardware.