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
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (10) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (0) comments


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
Gigabit Nets Boost GDP, Says FTTH Council
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/23/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed