Quick Note: Intel Wants to Sell OnCue Internet TV Service for $500M
November 26, 2013 12:40 PM
comment(s) - last by
Intel wants to close the deal by the end of the year
Intel is trying to sell off its OnCue online pay-TV service for a reported $500 million and wants to complete the deal by the end of the year. Unnamed sources cited by
claim that Verizon Communications is one of the potential buyers of OnCue.
Intel has offered no official comment on the deal.
The main attraction of OnCue is its ability to deliver pay-TV programming over any high-speed internet connection without the need for a dedicated cable line. Intel has pumped a lot of resources – including dedicated hardware and software platforms -- into OnCue, but has faced challenges getting off the ground.
One of the big reasons the service failed according to industry sources is due to costs.
sources claim that licensing for paid programming cost Intel hundred of millions of dollars upfront under the terms Intel was able to get the chipmaker would have needed to outlay hundreds of millions of dollars up front regardless of whether the service was a hit or not with customers.
Intel CEO Brian Krzanich decided that the internet TV arm was a distraction for the company and has decided to make a
major push into mobile
internet-connected devices instead
This article is over a month old, voting and posting comments is disabled
11/26/2013 7:47:48 PM
It's a bit misleading to say consumer are paying for content they don't watch.
Once a cable/sat company installs the ability to broadcast 500 channels, they barely save anything from a consumer only wanting 1 channel. Some popular channels have the leverage to charge significant subscriber fees, but most of the channels people don't watch cost providers almost nothing.
Same thing with content providers. The crappy channels have negligible running costs for Viacom, Time Warner, etc. Their goal is to maximize revenue with whatever pricing scheme they can get away with. Selling channels a la carte is unlikely to save you anything once they adjust prices.
Until a significant portion of the population stops ordering cable/satellite (and it may well happen in the next decade) and becomes a market worth luring back in, both content providers and cable/sat companies are more worried about existing customers switching to online. They'll resist it until they have no choice.
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
Intel Creates New Division for Internet-Connected Devices
November 6, 2013, 9:21 AM
Intel Shake-Up to Focus on Mobile, New Devices
May 22, 2013, 11:04 AM
Facebook Adds Satire Tags to Its Auto-Generated "Related News" Posts
August 18, 2014, 10:43 AM
Comcast, TWC Pull Dinner Gift for FCC Commissioner... Sort Of
August 15, 2014, 1:10 PM
Comcast Accused of Wooing FCC Commissioner w/ $110K Dinner
August 13, 2014, 8:20 PM
Quick Note: Nokia’s Lumia 520 Available for $39.99 Off Contract Today Only
August 13, 2014, 10:37 AM
Wikipedia Scores $140,000 in Bitcoin Donations in One Week
August 11, 2014, 9:32 AM
China to Require Real Names for Chat Apps
August 8, 2014, 8:28 PM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Report: Windows 9 “Threshold” Tech Preview Coming Next Month
August 15, 2014, 11:29 AM
Apple Scores Patents, Preps New Reversible USB Plug for iPhone 6 Connector
August 18, 2014, 1:32 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information