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Intel Makes a Move on TV

It's offering looks technologically slick, but competition is daunting


IntelWith the PC business deteriorating, Intel (NASDAQ:INTC) needs to find a new source of growth. And one possibility is the TV market. According to a report in The Wall Street Journal, Intel is building an Internet video service, which includes a set-top box. The launch date is expected for the fourth quarter.

It looks like the underlying technology is cutting-edge. The system will come with facial recognition, which could prevent kids from watching certain programs. It will even allow for video conferencing.

But to win, Intel will need more than whiz-bang features. It will also have to invest huge amounts in marketing. Keep in mind that Intel has little experience in building a consumer brand. Plus, it will be extremely expensive to get access to quality content.

And yes, the competition will be intense. After all, other mega-tech operators — such as Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) — are also gunning for the market.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

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