According to reports, Intel
is making progress again after some delays
in negotiations with Time Warner, NBC Universal, and Viacom to fill out television shows and films for an online pay-TV service. Specific deals are being forged, with the media companies having signed off on the rough details of the service, with some aspects still to be settled.
Intel plans to offer an online product this year, according to Intel's vice president for media Erik Huggers. Bringing CNN, USA, and MTV to the fledgeling service would help build inertia for signing other networks.
Negotiations with News Corp, Walt Disney, and CBS are in the opening stages, according to Bloomberg's sources. Les Moonves, CEO of CBS confirmed in a February 14 earnings conference call that the network was discussing the matter with Intel. "Intel will have to pay a premium as the new kid on the block," said RBC Capital analyst David Bank.
Intel is expected to roll out any new service on a city-by-city basis, giving customers the option to subscribe to content on a channel-by-channel basis, instead of buying one or a number of packages as usually offered by a cable or satellite service provider. Users of the service would also have access to all content shown on the channel in the previous 30 days, using a cloud-based DVR. Such a service sounds similar to the acclaimed BBC iPlayer
service in the UK, a project that Intel Media VP Erik Huggers previously led.