A new TV service is allegedly in the wings, with a popular computer company at the helm. Intel is planning its own service which would require a set-top box, but that would offer both on demand and live programming to customers. However, the company has yet to close any programming deals. This is ironic, given that Intel has reportedly offered up to 75 percent more for the content it gets from media companies than cable companies are currently offering. Interestingly, parameters for content distribution have been established.
One plus of the Intel service is that it may allow customers to skip commercials when viewing a show’s first run. But although the new service may be unique, Intel is likely to pay a premium for media content, as the service is new with few subscribers. This is in contrast to cable companies, who have large subscriber bases and therefore can earn better prices on the content they desire to be able to offer their customers. The chipmaker to many internet providers and computer users has not yet announced how much customers would be paying for its Intel Media service, but it is predicted that this will be a premium, and hence a more expensive offering that what’s currently available via other channels.