Is Intel the Next Netflix or Comcast Competitor?

The Wall Street Journal reports that Intel is working on an IPTV solution that could put them in competition with Netflix:

Intel Corp. is developing an Internet-based television service that it hopes to sell to U.S. consumers, a strategic shift by the chip maker as it sets its sights on the crowded pay-TV business.

Intel has for several months been pitching media companies on a plan to create a "virtual cable operator" that would offer U.S. TV channels nationwide over the Internet in a bundle similar to subscriptions sold by cable- and satellite-TV operators, according to people familiar with the effort. Intel wouldn't provide Internet access, which subscribers would obtain separately.

A lot of big companies like Microsoft and Google have been trying to do this, but have faced rights and pricing challenges. 

"Several large firms have tried to put that package together and backed off," David Wells, Netflix Inc.'s chief financial officer, said of virtual cable operators in an earnings call in late January. "I don't think that is going to come into existence."

Comments

[moviegeek]

If Microsoft couldn't make it work then Intel will also fail, the studios want too much money to be profitable.

[Sly_3]

when will they realize consumers want ala carte programming?

[nate]

exactly sly_3 - the last thing I want is another service to keep up with that may or may not have what I'm looking for. Give me Al la carte and unrestricted access to everything (example: why no Fringe on streaming?). None of these companies get it - especially the content providers and studios. EPix and Vudu (which is making a valiant effort however with their new walmart offering) will most certainly be relegated to also-rans in comparison with Amazon and Netflix.

Studios are so concerned about piracy but don't learn the lessons of history. Restrictions results in a black market you can't control and don't make any money off of. Outcompete the pirates and the only piracy you'll have to worry about are actual thieves which is .000001% of the population as opposed to well-intentioned people who would gladly pay for content if they would just provide it in the format and convenience they are looking for)