Intel Corp. (Nasdaq: INTC) reportedly has joined the list of high-tech companies planning to throw a hat into the TV ring. Several news outlets are reporting today that it is floating the idea of an Internet TV service powered by Intel equipment.
Google (Nasdaq: GOOG) and Apple Inc. (Nasdaq: AAPL) are among the tech companies experimenting in the TV space. Apple makes a digital media receiver that lets users watch programming from the iStore, NetFlix, and other outlets. Google's first foray into Internet TV (which offered similar programming options) didn't take off.
Such a move is the logical next step for any business that wants to capitalize on the boom in mobile media devices such as smartphones and tablets. Companies that started out in the hardware business (like Intel and Apple) could develop devices that improve the viewing experience. Apple's new iPad offers an unbelievable display -- not that many people have actually seen it. Intel makes the fastest, most powerful chips in the world.
But so far, the TV hardware offerings have been ho-hum. The box and remote powering Google TV weren't particularly user-friendly. New devices are scheduled to be released this year.
What's really holding these companies back, according to reports, is resistance from major networks that want to protect their agreements with cable TV carriers. Like its predecessors, Intel is pitching a package of programs to be provided over the Internet. There is no mention of whether that content will be unique, developed for better Internet performance, or in any way different from the current offerings. Moreover, content creators and licensors are increasingly leery about making content too available.
Cable TV definitely still has its shortcomings, one of them being the cable itself. But it is not the lack of mobility that seems to be keeping users from flocking to GoogleTV, AppleTV, or IntelTV. It's the lack of content, as well as the potential cost. In the Boston area, Comcast/Xifinity offers a streaming TV option. Since we already have our phone, Internet, and cable with Comcast, the service is free. If Comcast were to charge us for this service, I'd drop it like a hot potato. The programming largely overlaps with the on-demand programming we already get, including movies carried on premium channels such as HBO and Showtime.
What would Intel have to develop to prompt viewers like me to subscribe? Maybe a reality show featuring engineers stranded on a desert island?
I continue to try to figure out what Intel wants to do here, and I remain perplexed. If this is a signal that Intel is moving away from its core competency, then it is really more of a leap. The best way to do this is move into adjacent markets, so building set-top boxes etc. makes sense. But in terms of licensing and supplying content...Apple, Amazon and now many cable operators have claimed a stake. Intel would still have to improve on existing models...maybe faster download?
Since the late .70's, Intel has repeatedly proved that they are the absolute leaders in MOS process technology and that anytime they try use it for anything except another step along the X86 path, they get their proverbial heads handed to them (along with the privledge of writing off another few $billion).
The idea of Intel as a service provider is laughable.
You would think that Intel's efforts to kill the Infineon business they bought would occupy most of their free time.
@Barbara: It seems interesting but it has desperation written all over it. We will have to wait and see if Intel's move to diversify into the services sector is fruitful. To me it doesn't seem a viable option because of the high cost and the lack of content. The only thing that will attract customers to internet TV is the content.
@hm: Still, TV? I could see investment in the hardware side, but as a service provider? I rarely discount Intel's ability to do almost anything, so this definitely will be interesting.
Intel has lots of cash. They should have good idea, develope product for it and take over some big players. That way they can have kick start and not miss opportunity like they missed it in mobile market. It is very good news.
FScot: Yeah, I'm thinking "Survivor" but with engineers. Imagine the potential for green technology...a computer built from coconuts; seashells that actually play music...
Yeah, I'm still having a hard time picturing Intel as a "cable" provider, yet, all the reports I'm reading emphasize the content side of the market rather than the hardware. My guess is Intel is looking to emulate the Apple model of supplying devices as well as the content. But Internet content right now is existing content in a different format. If users end up paying twice for the same thing (i.e., I have cable, but I am paying to download the same program on my tablet) there is just no value to the service.
If Intel allows you to download something once and use on your TV, smartphone or tablet, that's something worth looking at. But licensing is going to be a big part of the process.
Back in 2005 Intel attempted to break into the media business market with their Intel Viiv, but that didn't take off and Intel eventually dropped the project. They probably learnt a lesson from that failure, but there are many challenges they will have to overcome before they can be able to break into that tv business.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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