Intel Struggling to Sign TV Deals for Upcoming Web Service

by Christopher Freeburn | June 14, 2013 9:08 am

retro tv 630x418 300x199 Intel Struggling to Sign TV Deals for Upcoming Web Service [1]Intel (INTC[2]) is moving forward with plans to launch a set-top box later this year, but has yet to secure any deals with major content providers[3].

The chip-making giant is encountering resistance from large cable channel owners, who worry that licensing content to Intel could dent revenue from subscription TV services. Smaller content producers are bound by contractual deals that constrain them from making deals to license content, the Wall Street Journal notes.

The same media companies that have held off signing deals with Intel have already inked agreements with video streaming platforms from  (NFLX[4]) and Amazon (AMZN[5]). However, those services allow users to stream materials from established libraries of titles. Intel’s is planning to include live television feeds along with video streaming in its set-top box, which puts it in a position to compete with pay-TV providers like Comcast (CMCSA[6]).

Some subscription-TV services also have limitations in their contracts with cable channels that make it harder for the channels to make separate deals with Intel. Time Warner Cable (TWC[7]) reportedly has negotiated such terms with a number of cable channels, including those from Disney (DIS[8]).

Sources told the Wall Street Journal that Intel has been talking with media companies for at least 18 months. Some content providers are wary of being the first to sign with Intel.

Despite its lack of content deals, Intel says the set-top box. which was announced earlier this year[9], will launch on schedule.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/retro-tv_630x418.jpg
  2. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  3. has yet to secure any deals with major content providers: http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-253567/
  4. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  5. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  6. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  7. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC
  8. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  9. which was announced earlier this year: http://investorplace.com/2013/02/intel-makes-a-move-on-tv/

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