Intel (INTC) Moving Forward in Content Talks for First Internet-Based Pay TV Service
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Intel (Nasdaq: INTC) is about to disrupt another industry.
According to reports out Tuesday, the chip giant is "making progress" in discussions with content giants Time Warner (NYSE: TWX), Comcast's NBCUniversal (Nasdaq: CMCSA), and Viacom (Nasdaq: VIAB) as it looks to commence a first-of-its-kind Internet pay TV service.
Broader outlines of proposed deals have been signed off on, though minute details have yet to be approved. Other content providers, like News Corp (Nasdaq: NWSA), Disney (NYSE: DIS), and CBS Corp. (NYSE: CBS), either haven't started or aren't as far along in talks.
Intel plans on bringing its own set-top-box to market this year. Having access to stations like CNN, USA Network, and MTV would give Intel immediate access to a large viewership, and put pressure on names like DISH Network (Nasdaq: DISH), Netflix (Nasdaq: NFLX), and DirecTV (Nasdaq: DTV), among others.
One RBC analysts suspects that media companies will be more than willing to work with Intel, given its the "new kid on the block" and will likely pay a premium for content versus established names.
Executives from content providers -- like CBS CEO Leslie Moonves and Time Warner's Jeff Bewkes -- have been open to the idea recently. Many providers are looking for new distribution channels and understand that an Internet service is likely the direction which most households will be leaning towards getting content from in the future.
Shares of Intel are indicated for a higher open Tuesday.
According to reports out Tuesday, the chip giant is "making progress" in discussions with content giants Time Warner (NYSE: TWX), Comcast's NBCUniversal (Nasdaq: CMCSA), and Viacom (Nasdaq: VIAB) as it looks to commence a first-of-its-kind Internet pay TV service.
Broader outlines of proposed deals have been signed off on, though minute details have yet to be approved. Other content providers, like News Corp (Nasdaq: NWSA), Disney (NYSE: DIS), and CBS Corp. (NYSE: CBS), either haven't started or aren't as far along in talks.
Intel plans on bringing its own set-top-box to market this year. Having access to stations like CNN, USA Network, and MTV would give Intel immediate access to a large viewership, and put pressure on names like DISH Network (Nasdaq: DISH), Netflix (Nasdaq: NFLX), and DirecTV (Nasdaq: DTV), among others.
One RBC analysts suspects that media companies will be more than willing to work with Intel, given its the "new kid on the block" and will likely pay a premium for content versus established names.
Executives from content providers -- like CBS CEO Leslie Moonves and Time Warner's Jeff Bewkes -- have been open to the idea recently. Many providers are looking for new distribution channels and understand that an Internet service is likely the direction which most households will be leaning towards getting content from in the future.
Shares of Intel are indicated for a higher open Tuesday.
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