AT&T is bringing another option for video watching on Windows Phone 7 beyond Zune videos: U-verse for watching television. It will be free to current U-verse customers, but non-customers can still get in on the action for $9.99 a month. It will be available sometime next month, too!

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In the demo today, Microsoft showed searching for shows and viewing them and it all looked quite good and consistent with the Windows Phone 7 Metro UI.

Oh yeah, and it's coming to Xbox too - though you definitely need to be a U-verse customer to take advantage of that option.