blog post 6
Intel may sell Internet TV business to Verizon
Chipmaker Intel Corp is reported in talks to sell all parts of its Internet television venture to Verizon Communications Inc., reflecting its will of focusing on developing intelligent system and uphill battle in securing content for the pay-TV service. Earlier this year, Intel decided to launch an Internet TV service with live and on-demand content in a bid to find an alternative revenue stream as its core business of providing chips to computer makers erodes. The service, called OnCue, has been in the works for the past two years and would stream TV channels over the Internet. Intel also developed a set-top box that company employees were said to be testing in their homes. The field of players competing for in-home entertainment audiences is increasingly crowded. Apple Inc, Google Inc, Sony Corp and Microsoft Corp are jockeying for position to own the living room through TV, while Netflix Inc and Amazon.com Inc’s streaming video services have millions of subscribers. Verizon already has a streaming product as part of a joint venture with Redbox, which focuses mostly on streaming movies and not on TV shows, according to its website. That product competes with Netflix. Intel has struggled to reach content deals with media companies even though it offered to pay sizeable premiums over traditional cable rates. Several news reports indicated Intel is now discussing a potential deal with Verizon to hand over control of Intel Media, the unit responsible for building the subscription TV service.
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