Microsoft (NASDAQ:MSFT) knows that it can't own the living room without Hollywood's consent. 

Deadline Hollywood is reporting that CEO Steve Ballmer is in Tinseltown this week, meeting with producers, broadcasters, and agents to make sure that they buy into its Xbox One gaming console as the heart of home theater entertainment.

Google (NASDAQ:GOOGL) didn't get this right with the poorly received launch of Google TV, and it's these very negotiations that have reportedly held Apple (NASDAQ:AAPL) back from making its push into smart televisions.

In this video, longtime Fool contributor Rick Munarriz explains why it's a necessary step to make sure that Microsoft gets it right, but also why Hollywood needs Microsoft to get it right.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.