Is the FCC Redefining Television

The Federal Communications Commission is preparing a proposal which could help the fledgling OTT industry by treating certain online video services like cable and satellite TV providers. The move would help the online services gain cheaper access to major network programming and could allow them to become stronger competitors to the dominant pay-TV providers like Comcast.  Gaining rights to popular channels has been a major hurdle for online TV services. Sony Corp. and Dish Network (as previously reported here) are among the companies considering Web-based services to compete with traditional cable and satellite operators. The big issue and cause for some OTT failures like Intel’s exit from its “OnCue” service, is in securing highly coveted programming from ESPN, NBCU, AMC and others is that the networks typically are owned/controlled by the larger MVPD’s (Comcast, Time Warner, Cablevision).

FCC Chairman Tom Wheeler was asked about the matter yesterday and stated that a proposal is circulating among commissioners “is probably a bit of an overstatement.” Nonetheless the industry analysts are buzzing. “This is a very big deal,” said Richard Greenfield, an analyst for BTIG. “It could pose very significant challenges to the traditional cable TV bundle.” Paul Gallant, with Guggenheim Securities, said in a note today, that broadcasters such as CBS Corp. and 21st Century Fox Inc. would potentially benefit from having more buyers for their programming.

According to an unknown source by Bloomberg, the change would affect online video providers that offer a cable-like programming service on a schedule, and not on-demand services like Netflix, which allows subscribers to watch videos whenever they want. But it could revive the controversial online video service Aereo, which allowed subscribers to watch broadcast TV channels on their computers and Internet connected-TVs.

 

Although for now this may just be chalked up as a rumor, it is one that would have a broad impact on the business as it is today, a  move which could significantly broaden competition in the MVPD market. More: FierceCable 09/30/14 - Rumor mill:Aereo-like platforms may be given program licensing rights by FCC and/or Variety.com09/29/14 - FCC Wants Some Online Providers to be Treated as Cable Operators

Verizon ramps up TV, buys Intel Medias OnCue

Verizon announced Tuesday its agreement to purchase the assets of Intel Media, a division of Intel dedicated to the development of cloud TV products and services that includes the OnCue Cloud TV platform. Financial terms were not disclosed, and although the deal has to pass through regulatory screenings, it’s expected to be closed by the end of Q1 2014. From the industies perspected, OnCue was a long shot for Intel. Headed by Intel Media VP Erik Huggers, it was definitely one of those try-it-and-see-how-it-goes sort of endeavors. According to sources at Verizon, they are aquiring all of Intel Media, including their 350 employees, intellectual property rights, and other assets. "The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it," said Verizon CEO Lowell McAdam.

Intel's TV service is named OnCue

Hot scoop from Gigaom is out today. According to Janko Roettgers, Intel's forthcoming TV service, which is expected by the end of the year, will be called OnCue. Branding and advertising for the service will likely be handled by OMD, Roettgers adds. The patent applications also reveal a logo and a potential tagline: "TV has come to its senses." More: gigaom.com 07/12/13 - Scoop: Intel’s upcoming TV service is going to be called OnCue

Intel's Pay-TV Service

Can Intel, best known for its computer processing chips succeed where Apple and Google couldn't? The company is said to be in discussions with Time Warner, NBC-Universal, News Corp, Viacom and others to obtain TV shows and films in preparation for the launch for its upcoming online pay-tv service. Intel’s Erik Huggers (see 2/16 post - Erik Hugger’s Intel Plans), well-known to European players for his work at the BBC, Microsoft and at Endemol, confirmed Intel’s overall plans in February and although he was vague about his programming plans it now seems that those discussions are advancing. He is betting that Intel can create a more flexible service (unbundled networks), delivered through consumers’ broadband accounts, that gives subscribers more choices over the channels they receive and offers an easier-to-use electronic programming guide. More power to them if they can do it. Perhaps the timing was just not right for their predecessors! 3/26 Bloomberg - Intel Said to Be Nearing Media Deals for Pay-TV Service 

Erik Huggers on Intel's TV Plans

Since this year’s CES show in early January, Intel has been receiving a lot of press on it's up and coming Web TV service. In a recent conversation with Peter Kafka and Walt Mossberg at D: Dive Into Media, corporate VP of Intel Media Erik Huggers tried to make the case that yes, the hardware company can make a compelling case to market Web TV to consumers. Can they succeed where other industry giants like Apple and Google have not? Hugger's admits that it's an uphill battle. The Intel service will require consumers to purchase a new box (the name of which is yet to be announced), which is necessary to deliver what he deems “the full experience” that the company wants. "I think we can bring an incredible television experience via the Internet to consumers,” Huggers said. “What this is not about... is a value play.” Don't expect them to offer “a la carte” programming, either. In other words, expect bundles of programming like those offered with other major TV packages. But Huggers’s pitch is for a better bundle, smarter and more well-curated. “If bundles are bundled right … I think there is real value in that,” he said.
No doubt Intel’s most difficult sell with this new product/service will be with the integrated camera. According to Hugger, it watches your movements and TV viewing habits with the aim of personalizing the way your each member of the household watches television (not to mention it’s ability to highly target advertisements). Ultimately, he said, being able to identify an individual TV viewer will provide a better overall user experience. So in a nutshell, Huggers wants you to buy a great-looking box with a superior UI and potentially personalized content streams for roughly the same or more than you currently pay. From my perspective that’s going to be a difficult pitch, to say the least. Over the past five years I've worked with the majority of companies that are trying to carve out a share of this space. This is definitely one to keep an eye on. More on this to come!

See the interview on Aol: http://on.aol.com/video/erik-huggers-talks-up-intels-web-tv-service-517670867