Intel Deal Could Help Verizon Expand Its TV Horizons

Verizon Communications and Intel on Monday introduced that Verizon might be buying the property of Intel Media, the developer of the OnCue Cloud TV platform. The phrases of the deal weren’t disclosed, however Verizon famous it hopes to maintain in home many of the unit’s 350-strong workforce and administration workforce.

Intel Deal Could Help Verizon Expand Its TV Horizons

These property will permit Verizon to offer enhanced next-generation video companies for its shoppers and to decrease ongoing deployment prices, it stated. The mental property that Verizon is buying additionally will give customers higher search and discovery capabilities, together with interactivity that is built-in with the Verizon Wi-fi 4G LTE community.

This content material might be integrated into Verizon FiOS fiber-optic choices and delivered “excessive” to any machine.

The transaction, topic to customary regulatory approvals and shutting circumstances, is anticipated to shut early within the first quarter of 2014.

Why This Deal?

For Intel, the sale of those property seems to be a part of a broader technique to double down on its foremost choices of knowledge facilities and extra superior applied sciences fueling the Web of Issues, stated Wealthy Hanley, affiliate professor and director of the graduate journalism program at Quinnipiac University.

“The deal sheds an inert piece of Intel’s portfolio of issues, permitting it to give attention to the core items of its enterprise,” he instructed the E-Commerce Occasions.

The transaction has the potential to assist Verizon make important inroads in new markets.

The issue is, the corporate isn’t doing a superb job of explaining precisely how will probably be utilizing these property, telecom analyst Jeff Kagan instructed the E-Commerce Occasions.

“Verizon, AT&T and Century Hyperlink are the three large telephone firms that may ship a aggressive provide to the cable TV business. The issue is, they don’t seem to be out there in all markets,” he famous.

Will Verizon use Intel Media to broaden its footprint and attain extra clients, or will it use it to develop new merchandise to promote to its present buyer base? Kagan questioned.

Intel Media’s property will bolster different current investments Verizon has made on this area. In December, it introduced a definitive settlement to amass EdgeCast, a supplier of content material supply networks. Late final yr, Verizon additionally introduced the acquisition of upLynk’s expertise that streamlines the importing and encoding of video for reside and video-on-demand content material.

Nationwide or Regional Participant?

Taken collectively, these property have the potential to propel Verizon into the identical league as Comcast when it comes to content material choices, Charles King, principal with Pund-IT, instructed the E-Commerce Occasions.

Intel Media is a really compelling and attention-grabbing unit, he remarked. Intel launched it a couple of years in the past, borrowing from BBC’s administration steady, with the objective of constructing an agnostic platform that will bypass conventional cable TV.

“Verizon is getting an excellent asset with this deal,” King stated.

The scope of Verizon’s ambitions is unclear, though King ventured to guess that it finally desires to be a nationwide participant.

“The corporate clearly has massive ambitions in media supply space, and if they will construct on the work that the parents at Intel have already achieved, it may be a really aggressive entity,” he stated.

To this point Verizon has been delivering media companies in a handful of city markets, King famous, “and I might anticipate the preliminary affect to be felt in these areas. However based mostly on what I believe the corporate’s ambitions are, I might anticipate a wider rollout over time.”
Intel Deal Could Help Verizon Expand Its TV Horizons

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