Intel's Set Top Box System Delayed, Possible Content Licensing Issues

Intel's grand plan to dominate the living room and turn the cable TV world upside down with its own Internet-based TV service has already hit a snag. The Santa Clara chip maker originally wanted to launch its service before the end of 2012, and with that time frame having now passed, it's looking like mid-2013, or even later.

According to a report in The Wall Street Journal, Intel's having a tough time hammering out content-licensing agreements with the entertainment companies that own all the major TV channels.

Intel TV

While this is relatively new territory for Intel, the company isn't going at this completely blind. Intel created a group called Intel Media to handle its streaming TV initiative. It's led by Erik Huggers, a corporate vice president with experience at the British Broadcasting Corp. The group has already gone out and hired a bunch of Internet TV gurus with experience in the field.

Intel's vision is to become a virtual cable operator, offering U.S. subscribers TV channels over the Internet in bundles similar to what cable and satellite TV operators provide. The hardware side is a piece of cake for Intel, which has extensive experience in server technology that could drive such a system. Intel's challenge is getting content licensing, as entertainment companies are notoriously hesitant to ink deals with web TV services. Intel has, however, reached at least one content deal, though details of that deal are unknown at this time.
Tags:  Intel, Television, DVR
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