Global Chip maker Intel Corporation is second-guessing itself about trying to enter the Internet TV segment. The company is allegedly in talks with Verizon Communications to arrange hand-over of gathered intelligence and hardware based infrastructure.
Intel had famously chosen to step into, the then promising world, of Internet based TV Streaming business. But it appears Intel seems to have failed in signing content deals with Media Companies despite offering considerably higher premiums than its competitors.
Why did Intel even consider getting into such a market?
Intel is world’s largest chip maker. Additionally, it has expertise in smart communications between hardware components. But, faced with an acute slump in the PC market owing to the rapid adoption of smartphones and tablets, the chip-maker was faced with dwindling demand.
To ensure the company continued to generate revenue, Intel had been trying to evaluate alternate streams and avenues to offer its core products. Though it has made a fair bit of progress by venturing into the Smartphone segment, Intel still hasn’t been successful per say. So far only handful devices appear to be sporting the famous ‘Intel Inside’ logo.
During these exploratory times, multiple companies, including internet giant Google, were experimenting with Internet Driven TV. Similarly, these enterprises were also working hard to secure content for their ventures. It appears, the primary reason for failure to launch a viable and sustainable platform, was Intel’s inability to come up with large amounts of content that could be streamed. Ironically, Intel had grand plans since the conception stage. The company had even designed and was extensively testing, Special Set-Top Boxes (STB) that would be connected to TVs.
Questions about Intel’s plans, interestingly originated within the organization itself, when newly appointed Chief Executive Brian Krzanich himself warned he was taking a cautious approach to television, which is far from the company’s core business of chip manufacturing.
Internet TV is surely a promising segment. But apart from high technical expertise, it also requires huge sources of stream-able content. Google seems to be positioning itself very well. Let’s hope Intel manages to find success in the alternate revenue streams like mobile computing and the newly emerging Wearable Tech. What would you suggest to Intel?
Image Credits: ug