14 DAY TRIAL // Intel is setting up the Intel TV service as a mean to expand its pedigree beyond the industry of integrated circuits. Sadly, the company isn't enjoying the sort of success it probably hoped for.
On the surface, the Intel TV service sounds like a godsend. A cable TV service that will earn content providers 75% more than what traditional cable firms need their customers to pay.
Basically, Intel will, at least at first, offer a lot more for on-demand TV service than all its rivals.
The Intel set-top box will use motion tracking remote control, an Intel Atom CE5200 chipset, a camera (will record age group, gender and other details about the viewer and add to the demographic data, for advertising purposes).
Unfortunately, there's a little problem: Intel hasn't managed to get any content contracts. At all.
Its attempts to get talks to go its way turned out unsuccessful, so now it has to become “substantially” more flexible in willingness to pay for content.
Apparently, offering 50% to 75% more than the average fees calculated by research firm SNL Kagan isn't enough.
Obviously, having to pay more than it wants for content clashes with its intention to demand less money from customers. It can't exactly set up a service that loses more money than it makes.
Well, it could, given how much money the company has, but it wouldn't make financial sense.
Still, content providers aren't budging. Intel has reached a tentative, potential agreement with CBS, News Corp and Viacom. Just for potential content delivery though. Programming-level details have yet to be established.
In addition to more cash, Intel is being asked to make other concessions. For example, Intel envisioned a TV service that allows viewers to fast-forward through commercials during the first run of every show. Content providers want this feature gone.
Considering that Intel confirmed its TV plans back in February, there is cause to worry if so much time has passed without any distinct progress.