Intel Working on Web-Based TV Service to Compete with Cable

  • In a bid to diversify beyond computers, Intel is developing a Web-based subscription TV service that would compete directly with cable and satellite TV services.
  • The plan is to become a “virtual cable operator” using Intel technology that would begin by late 2012.
  • Intel has not yet acquired programming. It is currently making pitches to media companies and asking what they would charge. It has also setup an Intel Media group based in London, which is working on the user experience.
  • “The new effort would mark a big shift for Intel Chief Executive Paul Otellini, who has made clear his determination to move the company beyond the computer industry,” reports the Wall Street Journal. “Those efforts so far have include a series of TV-related businesses that have largely failed to gain much traction.”
  • Media companies have been resistant to similar ideas as they could damage profitable cable and satellite businesses.

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