& cplSiteName &

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        ADD A COMMENT
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?
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
LRTV Interviews
Heavy Reading: Big Video to Disrupt

1|6|17   |   4:39   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's Adi Kishore talks about the challenges of managing and monetizing bandwidth-intensive video, and how service providers will need to transform their networks to cope with the big video explosion.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Ericsson: 5G Heralds 'New' New Economy
Mari Silbey, Senior Editor, Cable/Video, 1/12/2017
Next Plugfest Gets G.fast Closer to Market
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 1/13/2017
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.