Intel sparing no expense to get its set top box up and running

By on June 10, 2013, 10:30 AM

Intel's plan of launching its own Internet TV service is moving forward, as Reuters reports that the company is locking down deals with CBS, News Corp., and Viacom. The agreements cover how content will be distributed on the platform, but it is not actually a firm deal for specific programming just yet.

In addition to the aforementioned deals already in progress, the report indicates that Intel is also in talks with NBC Universal to bring its shows to its service, but those are not as far along as the rest.

According to Reuter's anonymous sources, Intel is greatly increasing the amount it will pay providers per subscriber. In fact, the company is willing to spend as much as 75 percent more than cable companies for the content. This could mean the service will be more expensive than others on the market, but we can't know that for sure at this point.

While the additional money will attract major networks, Intel is also thinking about making it so viewers cannot skip advertisements on the first run of a show. For networks, this would be very attractive. But whether potential subscribers would be willing to switch from traditional and Internet TV services for this remains to be seen.

Intel is entering a crowded space with competitors like Roku, Apple TV, and Microsoft's upcoming Xbox One all working within the set top box area. None of them have secured a dominant position in the market, though. The company plans to offer live TV, the ability to catch up on past programs, and plenty of applications. That, along with the deals it is willing to spend top dollar on, could make it a major player in this business.

User Comments: 3

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JC713 JC713 said:

Overpaying for strides to get into a business that may or may not be successful. Some gamble.

mosu said:

Why not love Intel? Compare AMD with Intel: 1 AMD focused on video quality, Intel focused on encryption.2 Pay more for content-Intel, pay less for hardware-AMD 3 AMD out because people buy hardware for bragging rights, not per se(Apple effect, valid for NVidia too) 4 People pay more for hardware and content. End of story.It's just a very short story, you people could elaborate more.

Skidmarksdeluxe Skidmarksdeluxe said:

I wasn't even aware that Apple even went in for this kind of thing. What's it called... iSpy? or would that be a better name for Google's service if & when they ever followed suit.

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