World’s biggest chipmaker, Intel, plans to work on an Internet-based TV service this year that will stream live TV as well as provide content on demand. The company plans to enter a competitive race as reported by Reuters.
It’s a new departure for the company with its shift into an unfamiliar and costly market in which it lacks experience and 
contacts, said Erik Huggers, Vice President and General Manager of Intel Media, negotiating with the content providers.The Intel employees and their families have already started testing a set-top box, as part of their service. The company’s initiative has heated up competition with other tech giants like Apple, Amazon and Google who believes the $100 billion cable television project is at the brim of revolution.
The company plans to offer consumers smaller bundle of content than those currently offered by cable operators, told Erik Huggers to AllThingsD’s “Dive Into Media” conference as per the reports. He also added that he’s working with the providers and it is believed to launch the product this year. If the plan turns successful, Intel would reach heights compared to the products offered by Apple, Amazon and Netflix by offering live programming as well as on-demand content. The set-top-box will have a camera that can be automatically used to transfer content and ads towards specific users.
Certain media executives are doubtful whether Intel would be able to convince content providers to agree to terms that are striking enough to make its service feasible, Bernard Gerhon, head of digital consultancy Gershon Media and a former Disney senior Vice-President for strategic planning. Beyond the slowing PC market, analysts witness Intel’s leap into Internet television platform, alongside fast-growing focus on Smartphones and tablets.
In an interview, Huggers said that Intel employees are testing the interface, sound and picture quality and other features of the device. He added, “We’re actively testing it in the field with employees. It’s not the final product, but it’s certainly functional,”
According to Industry insiders, Apple might launch a TV-based device that could quiver up the television content and distribution industry similar to how iPhone and iPod disrupted the mobile and music content. Reports claim that Apple has opened discussions with providers of heading its way towards improvising the set-top-box called Apple TV which streams Netflix and other content.
Source: Silicon India
