Yes, Intel is Building a Web TV Service (A Box, Too)
The rumors were true. Intel is indeed developing an Internet TV service and a set-top box to boot. Speaking at D: Dive Into Media Tuesday, Erik Huggers, corporate vice president at Intel Media,confirmed rumors that have been circulating for months.
Context & Ripple Effects
Intel had already been reported to be planning a city-by-city Internet TV rollout with its own set-top hardware, while a January report said the service would not debut at CES. Erik Huggers' confirmation turns that reporting into a public Intel Media commitment.
The move extends Intel's earlier web-TV work with Google from supplying technology alongside a partner to developing a service and consumer device under its own organization. Unconfirmed reports of content-agreement delays underscore that programming rights, not merely hardware, are central to the launch.
First-order effects
- Intel Media becomes responsible for delivering both an Internet TV offering and the set-top box, placing Intel in direct contact with television viewers rather than only device makers.
- Media companies become necessary commercial partners for Intel's proposed service; the reported content-agreement friction makes rights negotiations an immediate constraint on any rollout.
Second-order effects
- Google and other web-TV providers face a better-resourced entrant that can pair a service with Intel-designed hardware, raising the importance of securing content and distribution partners.
- Intel's television effort gives its chip and hardware organization a live test case for whether a consumer service can create demand for Intel-powered living-room devices.
Third-order effects
- If Intel can secure programming and launch the service, the television market shifts further toward vertically coordinated bundles of hardware, software and content rights rather than standalone set-top boxes.
- Intel's move signals a broader strategic search for consumer-facing platforms as the company reduces its commitment to desktop motherboard production.
The trend: Web TV is becoming a platform contest in which chipmakers and technology companies seek control of the device, interface and content relationships together.