Why Intel's TV Ambitions Look Set to Fail, and What They Say About Apple TV
The following video is from Friday's installment of The Motley Fool's Weekly Tech Review, in which host Chris Hill and analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.
While all the noise in the TV space continues to surround larger names such as an Xbox One or Apple's planned TV attempts. Intel has been working in the background to create its own television offering: a set-top box that will deliver programming via broadband connections.
In this segment, Jason and Eric look at the massive amount of difficulties involved in successfully breaking up content in the highly guarded cable-TV industry. While Intel has struck deals for some content from companies such as Viacom, News Corp., and CBS, larger agreements for their networks remains elusive. More so, these companies are reluctant to work with Intel in spite of Reuters reports that Intel is willing to pay subscriber fees that are 50% to 75% of what cable companies are currently paying them.
The end result is that Intel's set-top box is aimed at a more "premium" end of the market, which would be an understandable disappointment for consumers hoping for cheaper "a la carte" offerings of different channels. Eric and Jason discuss the difficulties of trying out new business models in the media space, and how Intel's efforts highlight the difficulties securing content that have led to the continual delay of an Apple TV.
The full video is available here.
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The relevant video segment can be found between 0:00 and 6:18.
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Chris Hill and Eric Bleeker, CFA, have no position in any stocks mentioned. Jason Moser owns shares of Intel. The Motley Fool recommends and owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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