Intel's OnCue Streaming TV Service May Be Dead, Verizon Could Buy Intel Media Unit

Intel created a unit dedicated to developing a TV streaming service and associated hardware, and despite pledges from Intel Media vice president Erik Huggers that we could see the service launch by the end of the year, it appears that the experiment is over.

According to AllThingsD’s sources, Intel is close to handing the Intel Media unit over to Verizon. The sources indicate that the two companies are in advanced negotiations, although the specifics of the deal are unknown, including whether Intel would retain any part of the unit or if this might be some sort of partnership.

Intel streaming web TV

This is none too surprising, unfortunately; the OnCue service from Intel was always going to have the same content problem that every hardware maker does, which is that content providers don’t play nicely with distribution paradigms they fear, and the writing was on the wall a month ago when word emerged that Intel was looking for a partner such as Samsung or Amazon for the project.

Perhaps Verizon can crack the web-TV nut and blow open the marketplace.