It seems that Intel are so determined to make their new internet TV service a success, that they are willing to pay top dollar for content using a reported $2 billion warchest.
A report by Reuters has said that the new internet TV service which is scheduled to launch later this year, has offered to pay increased subscriber fees and are offering 50-70% above average rates.
The company are said to have reached preliminary content agreements with CBS, News Corp and Viacom, while talks with NBC Universal are still in the early stages. However no deals are officially complete yet until Intel confirm the rates they will pay which will apply to the companies.
The report quotes an insider who says that, “Intel needs deals with the top five or six US media companies to secure most of the popular TV channels.”
As an extra sweetener to the content owners they have even, “suggested preventing viewers from skipping commercials on the first run of a show.”
The Intel TV service will consist of a set-top box offering both live TV, catch-up as well as on-demand content and apps. They will look to compete with cable and satellite TV offerings, as well as internet TV providers such as Apple TV, Google TV, Roku and the new Xbox One.
The box will come equipped with a facial recognition camera to deliver personalized ads and content, and may come with a cloud based DVR system in place.