Andre Yoskowitz
8 Jun 2013 15:20
Intel has intensified their talks to buy content from media companies in an effort to introduce set-top boxes and an Internet TV service.
Apparently, the company is willing to pay a major premium, as much as 75 percent higher than traditional cable rates, in order to secure these deals.
Intel has yet to close any programming deals, however, say the sources, perhaps leading to some desperation on their part. So far, CBS, News Corp. and Viacom have all reached deals in principle over how the content could be used, but no actual licensing deals have been made.
The service is expected to be launched by the end of the year, but will obviously require more work. Intel is still in talks with Comcast for NBCU content, but those talks have not been as successful as the other media companies.
Intel is creating their own set-top box that would deliver content through your Internet connection and give you more flexibility in regards to what channels you want, instead of paying a flat fee for hundreds of bundled channels you may never watch. The service would offer live and on-demand channels. Intel is said to also be looking for access to a cloud-based DVR. Customers could view the content on mobile devices, as well.
Subscriber fees per channel can be as low as a few pennies or as high as $5, for Disney's ESPN, says SNL Kagan, a research firm.