![]() Given the power of content suppliers, and other operating/capital costs, Intel Media's ability to introduce a new service at a materially lower monthly cost than existing pay-TV services was likely impossible. Further, though Intel Media's head Erik Huggers said at the D: Media conference earlier this year that it would offer "flexible programming bundles" to subscribers, content deal terms would make this economically unfeasible to deliver. ONCUE INTEL FULLAs well, any deals they would make with Intel would be at full rate card and require minimum payments, creating lots of exposure to Intel if it couldn't meet its subscriber targets. ONCUE INTEL TVIntel's key problem breaking into the industry is that the big cable TV network owners are cautious about striking deals with any outsider who could (operative word is "could") disrupt a status quo that is already under considerable pressure. The fact that a new CEO took over at Intel this year no doubt prompted a fresh evaluation of the project. ONCUE INTEL SERIESThe trouble Intel is experiencing stems from 2 sources as I see it: the highly interdependent pay-TV ecosystem which rebuffs outsiders, and a series of questionable strategic decisions by Intel Media itself. Since Intel Media reportedly has had a 300-person team working on OnCue for almost 2 years, its potential demise would be an expensive lesson for the company in how hard it is to break into the pay-TV industry. As well, I view the likelihood of Samsung, Amazon, or anyone else riding to Intel's rescue as being similarly improbable. I for one was not surprised by the news, as I've regarded Intel Media's pay-TV venture as facing extremely long odds. It also recently announced the acquisition of technology from upLynk that allows for more efficient video uploading and encoding for live and on-demand video.Reports surfaced last week that Intel Media's planned OTT pay-TV service "OnCue" has hit a major speed bump, and the company is now looking for potential partners such as Samsung or Amazon to help get the service launched. In December, the company bought the content-delivery-network company EdgeCast. Verizon has been aggressively pursuing new ways to deliver content. The service will also integrate with Verizon Wireless’s 4G LTE network, the company said. ![]() If it is approved, Verizon said, its customers can expect to see OnCue’s search and discovery functions on their Fios fiber-optic services, including the ability to watch videos across multiple screens. ![]() The deal is subject to regulatory approval. The unit will continue to be based in Santa Clara, Calif. Verizon said Tuesday that it will buy all the intellectual property and other assets associated with OnCue and will try to retain the 350-person development team. He notably made no mention of a move into the media world. With Krzanich at the helm, the firm has begun to focus more on its core chip business, with a particular emphasis on how the company can accelerate its mobile-related growth and become the go-to chip manufacturer for the burgeoning wearable-technology market.Īt this year’s International Consumer Electronics Show - which took place after the expected launch date of Intel TV - Krzanich took the stage with a vision of how Intel could build the future through wearable devices and microprocessors. Those plans changed after Intel appointed a new chief executive, Brian Krzanich, in May to replace Paul Otellini, who retired. Erik Huggers, general manager of Intel Media, has said he wanted to launch a service that “incorporates literally everything” and would allow live television to be streamed over the Internet. Intel TV was supposed to mark Intel’s big push into the media world, but the chip company announced Tuesday that it’s bowing out of the project. Neither company disclosed the deal’s value, but some media reports have said that Intel was expecting to sell the unit, called OnCue, for between $200 million and $500 million. Verizon said it will use Intel TV to “accelerate the availability of next-generation video services” on its fiber-optic networks and deliver “over-the-top” online video services. Verizon Communications on Tuesday announced the acquisition of an online video-streaming service that will expand its offering of television services across the nation and to any device.Ĭurrently, its Fios television service serves about 5.3 million video customers, but Verizon has its eyes set on using Intel’s video-streaming technology to bring on-demand television to its nationwide wireless network of 102.8 million customers. ![]()
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