![]() A new Web TV provider likely would need to commit to three to four years of content payments as though it's already operating a business with millions of subscribers.īut what does that mean for the tech competitors attempting to break through with Web TV? "Out the door, you're paying for a million subs, whether you have zero or a hundred thousand," he said, noting that fee payments aren't going down over time and typically have three- to four-year terms. Media companies not only negotiate for carriage fees, he said, but also aim for a new distributor to guarantee a minimum number of subscribers. Be it TV shows, sports programs, or live events, content is expensive to produce and it's expensive to license.Įrik Bannon, analyst at IHS, called it the biggest barrier to tech companies. Test versions of OnCue have been deployed in Intel employees' homes for months. Intel delves deeper into consumer electronicsĪs Intel proved, the easy part was creating a new technology to deliver television with a user interface that beats cable and satellite.Intel confirms it's building an Internet TV service and box.Wave fingers, make faces: The future of computing at Intel.Before Apple's iPad, there was the Intel IPAD.More than a chip maker? Intel's blown opportunities.Unfortunately for all tech companies eyeing Internet TV, the problem that rankles cable and satellite customers most - climbing bills - is a problem technology can't solve. But the reasons OnCue lacked appeal for Intel's new CEO are the same snarls that Intel's tech competitors must untangle to make Internet-based pay TV a reality. Yes, all the tech giants must jump over some of the same hurdles, but we know other players have more of a spring in their step than Intel does: deeper pockets and more knowledge about media are examples. ![]() Luckily for them, the most crippling of OnCue's problems was specific to Intel - apathy of new management. Their goal is to leap onto the biggest screen in the household, where Americans still spend the majority of their time watching media, and deliver what cable and satellite companies do now and more, all in one. There are lessons that can be gleaned from Intel's botched project, lessons that should be heeded by the likes of Apple, Google, and Sony, which are all said to be chasing the same vision. Intel is just one company attempting - and failing - to change the TV industry, underscoring the difficulties involved with convincing the major players to move out of their comfortable and lucrative business models. Now, with 2013 in its final weeks, Intel's goal for OnCue has morphed into securing the best payday it can from somebody who will take the venture off its hands.Įrik Huggers, head of Intel Media, speaks at the AllThingsD media conference. After all, he had a small army of 300 at work and more than 2,000 Intel employees testing OnCue, a new box and service that would allow users to watch live TV, on-demand video, and other Internet-based offerings like video apps in one package. In fact, Erik Huggers, the head of Intel Media, said in February that this would be the year Intel shakes things up. Intel CEO Brian Krzanich says that with the sale his company can further align our focus and resources around our broad computing product portfolio in segments ranging from the Internet-of-Things to data centers.Intel was set to revolutionize television. It will keep the current OnCue management team in place and offer jobs to “substantially all of the approximately 350-person Intel unit” which will stay in Santa Clara, CA. Verizon CEO Lowell McAdam says that it “provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation.” The company adds that it expects to “integrate -based TV services with FiOS video to further differentiate FiOS from traditional cable TV offerings and to reduce ongoing deployment costs.” In addition, the company will integrate the service with its wireless 4G LTE network. Intel was believed to want $500M for its platform, but the companies didn’t offer financial terms for the widely anticipated deal, expected to close by the end of March. Intel had hoped to move in to that emerging platform - it has a lot invested in the set-top boxes its OnCue service would use - but was unable to secure licensing rights for popular services at competitive prices. The deal positions Verizon to become a player in a new market for pay TV where channels are transmitted over the Internet. Verizon Agrees To Buy Intel’s OnCue Streaming Platform
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