Intel Corporation (INTC) Prepping Streaming TV for 2013?

With so much talk about Apple Inc. (NASDAQ:AAPL) developing an iTV system that upgrades its current set-top box, there has been some chatter behind the scenes about computer chip-maker Intel Corporation (NASDAQ:INTC) showing interest in expanding its business. Well, representatives of the company are apparently quoted as confirming the rumor that Intel TV may be coming by the end of this year.

Intel TV is expected to have both live and on-demand content through a streaming service through a set-top box, according to comments from Erik Huggers, corporate vice president of the Intel Corporation (NASDAQ:INTC) media division. “We have been working for (the past) year to set up Intel media, a new group focused on developing an Internet platform,” Huggers said. “It’s not a value play, it’s a quality play where we’ll create a superior experience for the end user.” He said his company is currently working to secure some content deals for the new service, which is currently being tested by many Intel employees and their families.

According to how this is described, Intel Corporation (NASDAQ:INTC) seems to be creating a hardware/software/streaming , “all-in-one” system that seems to have features that put Intel TV alongside Apple Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG) in terms of hardware and Netflix Inc. (NASDAQ:NFLX) in terms of content both live and on-demand.

Huggers said that Intel TV will likely have a smaller bundle of content compared to cable providers. “There is an opportunity to offer a bundle that can be curated by the consumer, an opportunity to create smarter bundles,” he said. This could be something related to an a la carte system where users can pick anc choose the content and networks that they will pay for and be able to watch, instead of users buying a full package of channels.

How personalized can this service become?

Apparently, Intel Corporation (NASDAQ:INTC) is taking the concept of personalization to a new level, as the Intel TV set-top box is supposed to have a camera inside it to perform facial recognition and the system can then offer programming to an individual based on preferences.

“There’s a scenario where the TV recognizes that it’s you and says ‘Hey, I know what you like. I know what you want to watch,’ versus the environment we’re in today where the TV literally is not interested in you at all,” Huggers said to Reuters.

While Intel says it plans to have something launched by the end of the year, there is still skepticism as to wehter Intel TV will become an actual market reality.

“The chance that Intel launches is zero,”  said Bernard Gershon of GershonMedia. “They haven’t cut any deals with any content companies, and they are not offering something that differentiates itself enough on service or price to get the deals done.”

Based on what you know, what do you think about Intel TV? Does Intel Corporation (NASDAQ:INTC) have some potential here, or are you a skeptic too? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

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