Intel Corporation (INTC)’s New Cable Service Could Cripple Companies Like TiVo Inc. (TIVO) and DirecTV (DTV)

But by the sound of it, an Intel subscriber would likely have no need for TiVo. Without knowing the details, it’s impossible to say that with total clarity, but TiVo Inc. (NASDAQ:TIVO) investors should carefully evaluate Intel’s service when it’s finally unveiled.

What about Intel?

But what about Intel itself? Can a foray into the paid content business serve as a catalyst to boost the stock?

Possibly. It might not be enough to offset the decline of the company’s desktop processors, but if Intel’s media project is successful, it should definitely help the bottom-line.

DirecTV is a $35 billion market cap company that brought in over $2 billion of free cash flow last year. Most of that money came from its 20 million US subscribers.

It would be naive to assume that Intel could replicate the business of a company like DirecTV right out of the gate, but if its service does become popular, it is a definitely a business where there’s money to be made.

Intel Media as a stock catalyst

Should Intel Corporation (NASDAQ:INTC)’s project turn out to be a popular alternative to the existing cable and satellite providers, it could offset some of the company’s PC-related struggles.

At the same time, it will offer consumers more choices when it comes to paid TV, and therefore should put pressure on the established players. In particular, companies that don’t provide Internet (like DirecTV) could be most exposed. Moreover, by the sound of it, Intel’s service will render a DVR like TiVo Inc. (NASDAQ:TIVO) completely obsolete.

Without knowing the final details, it’s too soon to judge the future of Intel Media. Nevertheless, by all appearances, the company is planning to get into the content game, and investors in the space should keep an eye on Intel’s project.

The article Intel’s New Cable Service Could Cripple Companies Like TiVo and DirecTV originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends DirecTV and Intel. The Motley Fool owns shares of Intel. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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