By Liana B. Baker
Oct 30 Chipmaker Intel Corp is having
second thoughts about getting into the television business and
is in talks with Verizon Communications Inc to take over its
Internet TV initiative, a source familiar with the matter said
The news was first reported on tech website All Things D,
citing anonymous sources.
While discussions are in the advanced stages, it was still
unclear if Verizon plans to take full control of Intel's
media unit or if Intel would maintain a stake in the unit, the
Representatives from Intel and Verizon both declined to
Earlier this year, Intel decided to launch an Internet TV
service with live and on-demand content in a bid to find an
alternative revenue stream as its core business of providing
chips to computer makers erodes. It hired hundreds of workers
and opened offices in Los Angeles and New York to work on the
The field of players competing for in-home entertainment
audiences is increasingly crowded. Apple Inc, Google
Inc, Sony Corp and Microsoft Corp
are jockeying for position to own the living room
through TV, while Netflix Inc and Amazon.com Inc's
streaming video services have millions of subscribers.
Verizon already has a streaming product as part of a joint
venture with Redbox, which focuses mostly on streaming
movies and not on TV shows, according to its website. That
product competes with Netflix.
Intel has struggled to reach content deals with media
companies even though it offered to pay sizeable premiums over
traditional cable rates.
Doubts about Intel's commitment to the venture emerged in
June after newly appointed Chief Executive Brian Krzanich warned
he was taking a cautious approach to television, which is far
from the company's core business of chip manufacturing.