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Intel goes to war in online TV streaming battle

Reuters/ AFR | Feb. 13, 2013
Intel, the world's top chip maker whose fortunes are eroding under the popularity of mobile devices, will enter the hotly competitive market of online television this year.

"The chance that Intel launches is zero," Gershon, who speaks with media and digital executives, told Reuters at the conference. "They haven't cut any deals with any content companies, and they are not offering something that differentiates itself enough on service or price to get the deals done."

Analysts see Intel's leap into Internet television, along with its growing focus on smartphones and tablets, as a way to diversify beyond the slowing PC market.

"The question you have to ask with Intel is, Is anything they do big enough to move the needle?" said Stacy Rasgon, an analyst at Sanford Bernstein. "You're not going to make or break the company on something like this."

Huggers previously worked at Microsoft and the BBC, where in 2007 he launched iPlayer, an online service letting viewers catch up with programs they missed on regular television.

"The model we envision is a model where live television and catch-up television live in the same paradigm," Huggers said.

Intel's shares were up about 20 cents, or 0.90 per cent, at $US21.23 in afternoon Nasdaq trading.

 

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