Intel plans Internet TV service in late 2012

In an apparent strategy of expansion of new products and markets that complement its core business, the manufacturing enterprise computing microprocessors Intel would be the last out to conquer the online television market appeal.

According to a report published by the Wall Street Journal (WSJ) today, the company is considering offering an online TV service (IPTV) for U.S. consumers who intend to compete directly with existing services for cable, satellite and telephony.

Although the service would be far from being realized, Intel has been holding talks with several companies that allow content to ensure a continuous supply agreement, using their own cable set top box in addition to virtual with its own interface user under the Intel brand.

As reported by the WSJ, to date content developers have signed contracts with the “virtual cable operator”, thereby launching the service attempt later this year.

Users would use broadband connections to access content from home made ??like programming channels found on cable or satellite services.

Tough competition.

Intel would not be the only technology company interested in entering the online TV business. To date there are solutions provided by Amazon, Apple and more recently Google, not to mention Netflix, Vudu and Hulu who have achieved a position in a specific segment of movies and TV shows.

The initial success of Netflix in movie rental segment was followed by Walmart with the acquisition of in February 2010. Both business models differ in that the former requires a monthly subscription while the second is on pay per use or purchase of content. Because their business model, Netflix has been in trouble with content providers, and therefore has suffered the loss of a significant percentage of its audience, as it declared its CEO.

Amazon has meanwhile managed to capitalize on the sale and rental of videos and TV shows online, well above Apple and Google, despite not having a set top box itself. Apple has tried to sell his own box, Apple TV, for access to movies and TV shows via its iTunes store. The latest device would be selling for $ 99. On the other hand, Google has conducted strategic alliances with manufacturers of consumer electronics devices and televisions to incorporate Google TV technology, and more recently with the launch of Google Play seeks to create a hub of entertainment for the sale of music, ebooks and movies that can be enjoyed in Android mobile devices, PCs and TVs.

Challenges of Online TV – IPTV

One of the challenges facing these companies seek to position themselves in the online television segment is the high cost of programming content (TV shows, movies, etc..). This is coupled with the fact that the creators of content and cable TV companies and satellite are not so eager to deteriorate found a business that in itself has been quite lucrative to them.

Another challenge they face is that providers of broadband services in the United States and elsewhere, are considering eliminating or changing the service for unlimited use for one that works carried out based on consumption, which would directly affect services such as those mentioned above and the new Intel initiative, as IPTV would not provide consumers with the benefits it would bring as potential replacement to traditional cable television service.

CNET reports that Intel has been dabbling in online TV for some time. In 2008 for example, partnered with Yahoo! to show possibilities of Web-connected TVs. The companies conducted demonstrations of Intel’s Widget Channel featuring photo navigation, access to YouTube and other social networks directly from television. However, by then Intel seemed to be centered in its microprocessor manufacturing business, looking to sell its chips to manufacturers of television in addition to computer makers. Today, the company has added a twist, possibly covered in the need to close the circle of business (chips and digital content) to meet a growing demand for online entertainment.

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