Intel Corporation (NASDAQ:INTC) is making developments in its negotiations with media companies including Time Warner Inc (NYSE:TWX), NBC Universal, and Viacom, Inc (NASDAQ:VIAB) to receive rights for films and TV shows for its online TV service, according to report from Bloomberg citing information obtained.


Intel Corporation (NASDAQ:INTC) is trying to negotiate financial agreements with media companies, according to the sources who requested not to disclose their identity because the discussion is private. According to them, the media companies agreed to the broad outlines of the company’s proposed service, but the parties still need to settle some aspects of their agreements.

Last month, Erik Huggers, vice president for media at Intel Corporation (NASDAQ:INTC) announced the plan of the largest chipmaker to provide an online product this year using its own set-top box. Media networks including Time Warner Inc’s (NYSE:TWX) CNN, NBC Universal’s USA Network, and Viacom Inc’s (NASDAQ:VIAB) are expected to provide a wide range of entertainment programs for Intel to offer consumers with alternative Pay TV services.

Intel Corporation’s (NASDAQ:INTC) Pay TV service will compete with existing providers such as Comcast Corporation (NASDAQ:CMCSA) and DirecTV (NASDAQ:DTV). The chipmaker aims to provide consumers with more choice, flexible service, and easier-to-use electronic programming guide delivered through a broadband account.

According to the unidentified sources, the largest chipmaker is also scheduled to discuss financial negotiations with News Corp (NASDAQ:NWS) while its discussions with The Walt Disney Company (NYSE:DIS) and CBS Corporation (NYSE:CBS) are still preliminary.

RBC Capital analyst, David Bank believed that media companies could gain from wealthy customers who are capable of paying more initially for contents than the existing customers of cable and satellite-TV service providers. In an e-mail statement, Bank wrote, “Intel will have to pay a premium as the new kid on the block.”

During an investor conference early this March, Time Warner CEO Jeff Bewkes expressed that he would consider providing content to Internet pay TV services just like the proposal of Intel. He said, “Not just Time Warner, but all of us have to look at these new distribution methods and whether they’re viable. No one has come along with that yet, and we’d look at it.”

Intel Corporation (NASDAQ:INTC) aims to obtain access to live television, a library of on-demand shows and rights for a cloud-based digital video recorder.