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That 'Revolutionary' Intel TV Service Has No Content Deals
Intel Will Pay Huge Premium, Accept Demands to Block Ad Skipping
by Karl Bode 08:36AM Monday Jun 10 2013
You might recall that late last year Intel started leaking details of a new Internet TV service they were working on they claimed would (like every new Internet TV service before it) revolutionize television. The press and tech blogs then did their usual unskeptical dance praising the service, many ignoring that much more innovative and aggressive companies than Intel (Google, Apple) had already tried this but run face first into the broadcast industry's licensing wall, designed specifically to keep such disruptive services at bay.

Reports then started to emerge that Intel was, rather unsurprisingly, having troubles getting content deals signed. While Intel appears to have made progress on this front and deals will get signed eventually, Reuters notes that Intel technically still hasn't gotten anybody to sign, despite the fact the chipmaker is offering a 75% premium over standard rates:
quote:
Intel Corp's talks to buy content from media companies for its new TV service are advancing, and the chipmaker is offering to pay as much as 75 percent more than traditional cable rates, people familiar with the talks said. But Intel has yet to close any programming deals, said the sources, who requested anonymity because they were not authorized to comment.
Amusingly, Intel is not only said to be willing to pay a premium, the source states they're buckling on demands by broadcasters on things like preventing consumers from skipping advertisements. All in all Intel's plan is, despite their hype, looking like much the same old story -- with either the service blocked outright, or getting laden with so many restrictions that any aspect of it that might have been "revolutionary" gets stripped out by an entertainment industry terrified of disrupting the status quo.

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ArrayList
netbus developer
Premium
join:2005-03-19
Brighton, MA

Intel should save its money

This thing will fail so hard.

n2jtx

join:2001-01-13
Glen Head, NY

Re: Intel should save its money

said by ArrayList:

This thing will fail so hard.

True but they have so much money they feel they have to spend it on something, anything.

Perhaps they could just start up a network that shows Intel Inside commercials 24x7.
--
I support the right to keep and arm bears.
tpkatl

join:2009-11-16
Dacula, GA

is there a potential anti-trust suit here?

We have a chip manufacturer that is trying to sell a product to and industry. The chip manufacturer has a pretty good track record for clever ideas and follow-through.

We have an industry (networks and content providers) that, across-the-board, are unwilling to deal with the chip manufacturer.

Could this be considered collusion? Is there some potential for ant-trust litigation if an entire industry bands together as a unit to restrain trade?

Is this notably different from the Apple/Booksellers price-fixing lawsuit currently taking place?
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: is there a potential anti-trust suit here?

said by tpkatl:

We have a chip manufacturer that is trying to sell a product to and industry. The chip manufacturer has a pretty good track record for clever ideas and follow-through.

We have an industry (networks and content providers) that, across-the-board, are unwilling to deal with the chip manufacturer.

Could this be considered collusion? Is there some potential for ant-trust litigation if an entire industry bands together as a unit to restrain trade?

Is this notably different from the Apple/Booksellers price-fixing lawsuit currently taking place?

The content industry is NOT unwilling to deal with the chip manufacturer.

The chip manufacturer, like all the other wannabe "innovators", simply isn't willing to pay the asking price for the content.

There is nothing "innovative" in delivering video streams via IP.

Until Intel, Apple, Google, Microsoft, Netflix, et al, wise up and realize they are largely irrelevant - just distributors, and recognize the content owners' rights, we aren't going to have nice things like ala carte access to 100% of content.

buzz_4_20

join:2003-09-20
Limestone, ME
Reviews:
·ObiVoice
·Pioneer Wireless

The only thing that works...

To truly change the game is Piracy.

*Unless the content providers start looking at giving customers what they want and not locking them into something else.

That way the user/technology is truly in control and can be made interesting.

* Added
equivocal

join:2008-01-23
USA

Re: The only thing that works...

Yep. None of the good, upstanding corporate citizens has any leverage on the content industry. So when they ask "how much", the content industry says "all of it...and a tonne of coke". The Pirate is our only hope. The corporate citizens will need to wait the 95 years for the copyrights to expire.
ericthered26

join:2011-09-29
Hamilton, OH

Ha, Block Ad Skipping

And money wasting will be the only thing you've revolutionized.

DataDoc
My avatar looks like me, if I was 2D.
Premium
join:2000-05-14
Martinsburg, WV

Ad-blocking is why I got a dish

So I get to decide which ads I'll watch. Why force me to watch an ad for something I'll never buy?

Back in the day, people got up to get a drink or a bathroom break. Now, we get to decide. That's a major power shift.

JakCrow

join:2001-12-06
Palo Alto, CA

Re: Ad-blocking is why I got a dish

Have you noticed today it's all the same companies advertising? There's hardly anything new, and most insult peoples intelligence to anyways. I can't say I've ever bought something because someone sang a song or danced a dance on a TV commercial.
XJakeX

join:2005-03-05
Coventry, RI

Changing Landscape

The TV networks are finally waking up to the fact that flat rate services like Netflix and Amazon that offer their old series with no commercials in a streaming format where an entire season can be watched in a span of two or three weeks (or even less if you have the time to spare) are not just another licensing deal and a way to extend the profitable life of their product which has already paid for itself through retrains fees, BUT - they are actually becoming competition.

The appeal of discussing last night's episode of whatever around the water cooler at work is fading fast as more and more people are realizing how seriously they are being ripped off by the TV networks, with the full cooperation of the rebroadcasters. While only a relative few have actually canceled their service and gone OTA / Internet streaming / Redbox, like many of the people at this forum, the number is growing as the unease with that huge bill every month looms large.

So licensing deals for the streaming services are becoming more expensive and harder to obtain. It's not surprising the TV networks aren't anxious to welcome a new player in the market, especially one with the financial might of Intel. If they can't easily make deals offering 75% over the going rate, that is very telling.

Netflix and Amazon have seen the light, and are investing more and more money into their own original series. Intel needs to follow that path or it will fall by the wayside.

I wonder what would happen if Netflix introduced a new series in an episodic format. How do you think the major TV networks and their corporate parents would react if, after a few months of the proper promotion and advertising, Season 2 Episode 1 of House of Cards debuted on Monday night at 9pm September 23rd, opposite some highly anticipated new show from CBS?
And Episode 2 was not available until the following Monday, same time, and so on and so forth? Once debuted, the shows would be available for streaming at any time, but each new episode - Monday at 9. I think some people would stand up and take notice. Especially HBO and Showtime.

Good luck Intel. The more the merrier.

voipguy

join:2006-05-31
Forest Hills, NY

Stupid move

Intel is a major supplier of chips for cable modems (with its division formerly known as Texas Instruments Semiconductors). They are a close number two behind Broadcom. The largest CM manufacturers have models with chips from both, some just use one or the other.

How many MSOs will buy the Intel-equipped modems if Intel is a competitor for video customers?

I think Intel just gave the cable modem chip business to Broadcom.