Intel TV – Crux not fixed.

Intel has nothing to make a splash in over-the-top (OTT) internet TV.

• Intel has already confirmed that it is working on an internet television platform with the aim to provide broadcast TV, catch-up TV and on-demand video.
• This is all well and good but at the moment only 5% of US households have “cut the cable” despite a fairly sizeable number of offerings to choose from.
• This strongly implies that internet TV is not yet have the depth (programming) or the reach (fast enough internet) to present a viable challenge to the existing broadcast industry.
• The ideal solution will be one where a subscriber can access to everything he wants through a single electronic programming guide be it live sports, broadcast TV, catch-up TV or on-demand programming.
• Live sports and broadcast TV are currently closely controlled by a few companies that will do everything in their power to ensure that TV over the Internet does not take-off.
• TV over the internet is the single greatest challenge that the broadcast industry has ever faced and one, if ignored, that will quietly put it out of business.
• This is why I think that when Google, Microsoft and others banged on the door to discuss integrating broadcast TV into their hardware, they were met with a flat refusal.
• Turkeys do not vote for Christmas (or Thanksgiving) and allowing the OTT players any space at all will simply hasten the demise of broadcast.
• Intel is still optimistic but I suspect this is because it has not yet tried to negotiate with broadcast.
• When it does, it will be met with the same response and so yet another offering will far short of what it needs to take-off anytime soon.
• There is no doubt in my mind that TV over the internet is the future but until the penetration levels hit around 25% or so it will be a long and hard road.
• Hence, I see no reason why Intel’s offering will be any different to anyone else’s and as it does not have the draw of games, it is likely to languish.
• PS4, Xbox, Apple TV and Roku dominate this market and there is no reason for anyone to suddenly to switch to Intel.
• If Intel can bring broadcast into its offering then it will have something, but for now it will be an also ran.