Intel Corporation (NASDAQ:INTC) may have postponed the launch of its rumored TV service to 2014 as it has yet to find a backer to fund and distribute its online-only service, according to a report from Variety. Intel Media First was set to launch internet TV service by the 2013 holiday shopping season, but now it has decided to delay the launch to 2014.
Rumors surfaced last year
Back in March 2012, there were rumors that Intel Corporation (NASDAQ:INTC) will launch its own set top box ‘OnCue’ and talks resurfaced before January’s Consumer Electronics Show when onlookers were expecting the chip giant to launch its new Netflix-like cloud-based TV service.
Intel answered the rumors in 2013 when an Intel Media manager reported that the set top box will stream live TV, movies, and on demand shows, and that the company was aggressively seeking partners.
OnCue will feed in all the aired programs on its server. All local, national and international programs on the service will be saved for at least three days. All a user needs is to do is turn on the box to view movies and shows from the past three days.
Possible options for Intel
According to AllThingsD, Intel has been in talks with Samsung, Amazon, and Netflix to back its TV service.
Netflix, Inc. (NASDAQ:NFLX) is considered to be one viable option as Intel wants to penetrate this market by getting into deals with companies that have massive internet video distribution platform.
However, the report from Variety says that Netflix and Intel Corporation (NASDAQ:INTC) never entered into serious talks about the prospect, and the streaming firm never planned to enter a service that would give competition to traditional cable and satellite TV.
The chip maker also tried to enter into a partnership with John Malone’s Liberty Media or its international cable operator unit, Liberty Global, through which Intel will receive financial aid. However, Liberty lacked an interest in the deal.
TV market not easy for new entrants
Pay TV providers do not believe that Intel Corporation (NASDAQ:INTC) or any other big company will be able to collect the programming rights and grow big enough to compete with cable and satcaster companies. Intel might face stiff competition from Sony Corporation (NYSE:SNE) and Google Inc (NASDAQ:GOOG).
New entrants face more than one challenge in the TV market as there is intense competition in the industry, coupled with a decline in aggregate subscribers in the United States.
