Light Reading

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?
Flash Poll
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
Cox Eyes Cloud-Based Home Networks

4|27|15   |   05:30   |   (0) comments


Cox's Jeff Finkelstein explains how moving services to the cloud will let cable deliver services faster and eliminate constant hardware replacements.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
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
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Comcast Reportedly Dropping $45B TWC Bid
Sarah Thomas, Editorial Operations Director, 4/23/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Amazon Earnings: What to Watch For
Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/23/2015
Adtran Is Developing White Box GPON Tech
Ray Le Maistre, Editor-in-chief, 4/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment