When GigaOM spilled the beans on what Intel Corp is upto, it seemed like one of those offhand "peek-a-boo" reporting efforts about what's going on in the big bad corporate world.

"Intel's TV Service"

It sounded like a joke, bizarre yet absorbing to just let go.

As the initial excitement died down with confirmation coming in from Intel's media boss Erik Huggers that the venture was actually underway, the skeptics are on a roll.

Erik confirmed that "The offering will include a consumer electronics device, which Intel will sell through retailers as well as through its own website. It is an Intel-powered device… with beautiful industrial design". They have been looking to cut a deal with major content providers to develop their media wing "focused on developing an Internet platform".

While some are lauding the move, many have reserved their opinion in this regard. However it is a trend that's becoming the norm in the Silicon Valley.

"According to research firms IDC and Gartner, the PC industry was weak in 2012 and is expected to remain weak in 2013 due to the softness in the memory market (specifically in DRAM), the ongoing Eurozone debt crisis and weak PC demand. In order to expand the company’s bottom line, Intel has increased efforts to move beyond the computer industry."
The technology companies are looking to venture into this sector precisely because they enjoy a collateral advantage in terms of programming and coding. This is a major drawback for most cable service providers who have to purchase the costly technology. The viewers too have pay for this at their end.

Despite being an unknown territory for the chip-making giant, it is nonetheless, it is not an unprecedented move. Other cyber big guns like Apple, Amazon and even Google are in the race to capitalize this booming sector of $100 billion. With a new entrant in the race, the things will surely become interesting.

From what we have been able to gather by the new stories and statements is that Intel Media plans to offer the viewers "smaller bundles of content" i.e consumers will have a choice to pick their preferences but obviously the hidden costs behind this move are being kept under wraps as of now.

In fact, many of the current employees at Intel are testing the set-top boxes personally. The devices come attaced with camera's that are likely to identify consumers and send out personalized content as well as ads.

While the venture surely looks to go onsong, mostly by late this year, Intel will have to a lot more than just media promotion or pilot testing of devices to get started. Remember that the existing cable industry has to be convinced that Intel is there to share a useful and healthy space.

How do you feel about Intel's latest move? Will you consider subscribing to their services?

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