Intel to launch online TV service

2013-02-13 12:00

Dana Point, California – Intel, the world's top chip maker whose fortunes are eroding under the popularity of mobile devices, will enter the hotly competitive market of online television this year with a service that will both stream live content and provide content on demand.

It marks a shift into unfamiliar territory for Intel and draws it into a potentially costly market in which it lacks experience, relationships or internal expertise. Intel will be competing with heavyweights like Apple, Amazon and Google that believe the $100 billion cable television ecosystem is ripe for change.

Intel's service would be centered on a set-top box and would offer smaller bundles than those currently offered by cable operators, Erik Huggers, vice president and general manager of Intel Media, told the AllThingsDigital "Dive into Media" conference on Tuesday.

Asked if Intel has inked any content deals, Huggers said the company is working with providers and said he is confident Intel will have a compelling product to launch this year.

"We have been working for (the past) year to set up Intel media, a new group focused on developing an internet platform," Huggers said.

"It's not a value play, it's a quality play where we'll create a superior experience for the end user."

Intel has struggled to get its virtual television service off the ground due to unwillingness on the part of major media content providers to let the company unbundle and license specific networks and shows at a discount to what cable and satellite partners pay, according to sources.

Silicon Valley has been taking aim at the US cable television market – dominated by major distributors such as Comcast and DirecTV Group and program makers like Walt Disney and Time Warner – because it is seen as ripe for disruption for reasons ranging from shifting viewer habits to ever-increasing programming costs.

Intel's plan, if successful, would go further than products currently offered by Apple, Amazon and Netflix by offering live programming as well as on-demand content.

Intel's set-top-box will also have a camera that could be used to automatically steer content and ads toward specific users.

"There is an opportunity to offer a bundle that can be curated by the consumer, an opportunity to create smarter bundles," Huggers said.

Some media executives are skeptical that Intel will be able to convince content providers to agree to terms that are attractive enough to make its service viable, a view shared by Bernard Gershon, head of digital consultancy GershonMedia and a former Disney senior vice president for strategic planning who helped Disney develop its online strategy.

"The chance that Intel launches is zero," Gershon, who speaks with media and digital executives, told Reuters at the conference.

"They haven't cut any deals with any content companies, and they are not offering something that differentiates itself enough on service or price to get the deals done."

Analysts see Intel's leap into internet television, along with its growing focus on smartphones and tablets, as a way to diversify beyond the slowing PC market.

"The question you have to ask with Intel is, is anything they do big enough to move the needle?" said Stacy Rasgon, an analyst at Sanford Bernstein.

"You're not going to make or break the company on something like this."

Huggers previously worked at Microsoft and the BBC, where in 2007 he launched iPlayer, an online service letting viewers catch up with programs they missed on regular television.

"The model we envision is a model where live television and catch-up television live in the same paradigm," Huggers said.

Intel's shares were up about 20c, or 0.90%, at $21.23 in afternoon Nasdaq trading.

Read more on:    intel
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Music
 

17 photo illusions that look so real

What if they aren’t illusions? What if that dog really has a human foot – then what?

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Don`t judge so quickly or expect too much, be more accepting and understanding and make space for fun and spontaneity. ...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.