Light Reading
Intel Media believes 'smarter' bundles and a more personalized experience will help it connect with younger consumers who are dissatisfied with existing pay-TV operators

Intel: Our OTT Service Will Expand the Pay-TV Pie

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
3/21/2013
50%
50%

NEW YORK -- By targeting young, connected consumers with a more personalized experience and "smarter bundles," Intel Corp. believes its coming over-the-top video service will help to expand an already saturated pay television market. Cord-cutting and cord-shaving "are real," said Eric Free, the VP and general manager of content and services for the recently created Intel Media unit, here at the Next TV Summit put on by Multichannel News and Broadcasting & Cable. He acknowledged that the cord-cutting trend is small "but growing" and will continue to increase as younger consumers move away from a pay-TV universe that's dominated by cable operators, telcos and satellite TV operators. Intel Media is moving ahead on a plan to launch a cloud-based, OTT service later this year that will feature a mix of live and on-demand content, plus interactive apps that aim to make it easier for customers to discover and access content on multiple screen types, and to make the overall experience more personal. Intel will support the service in homes via its own broadband-connected device. (See Intel Preps Its Internet TV Service.) Intel hasn’t announced a brand name for the service, but it will go after customers directly (versus partnering with a cable operator, for instance). It's currently testing the service with employees in three markets on the West Coast ahead of the formal product launch later this year, Free said. Intel Media, Free said, intends to preserve pay-TV's dual-revenue stream of subscriptions and advertising. On the latter, the company promises to offer a more personal and targeted advertising platform than what today's pay-TV operators provide. Still, expanding the pay-TV universe will be a tall order. SNL Kagan reported Wednesday that U.S. pay-TV providers added just 46,000 video subs in 2012, for a total of 100.4 million. Free said Intel Media won't try to undercut the pricing of its competition or deliver video on an a la carte basis. Instead, the company will look to offer "smarter" bundles. Free didn't outline precisely how that will be done, but did say that Intel Media likes "the concept of more thematic bundles." Free downplayed the threat Intel Media's new service will face from broadband caps and metered usage models. The market Intel is targeting, he believes, will pay more for a higher cap to support their individual lifestyles, including how they access video. He's also counting on new, more efficient codecs such as H.265/HEVC to help consumers access more video with fewer bits. "If the caps change, we'll change it from a business perspective," said Free, who believes caps will continue to grow as consumers usage of OTT video continues to rise. Bottom line, Intel Media thinks the younger set is dissatisfied with what they're getting from existing pay-TV providers and that the technology and business rules are now there to support a fully-fledged OTT-based video services. "The time is now for change," Free said.

— Jeff Baumgartner, Site Editor, Light Reading Cable



(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
3/21/2013 | 4:04:23 PM
re: Intel: Our OTT Service Will Expand the Pay-TV Pie
I'm curious to know what they think the realistic addressable market is for the group they claim they'll be targeting. And this does not even speak to the programming deals. still unclear on who they 'll get to play ball.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
3/21/2013 | 3:04:21 PM
re: Intel: Our OTT Service Will Expand the Pay-TV Pie
Nothing (much) against Intel, but there's more than a bit of hubris to this. And how much beyond 100 million can video subs expand in the US?
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (4) comments


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
Cablevision's New WiFi Try – Freewheeling Enough?
Mari Silbey, Independent Technology Editor, 1/26/2015
Overture Builds on NFV Foundation
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/27/2015
LightSpeed Looks to Plug the Gigabit Gap
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/23/2015
Parks Predicts HBO OTT Success
Mari Silbey, Independent Technology Editor, 1/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Weekly Executive Interview
Join us live for Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, Universal, Intel and Microsoft, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he has to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.