Apple and Google have been attempting for years to entice customers to ditch cable television for set top boxes that deliver TV shows, movies and more via the internet. For the past year or so, Intel has also quietly been working on a top-secret set-top box that could not only be better than what Apple, Google, and even Microsoft offer today, but also kill the cable industry as we know it.
This set-top box, said by industry insiders to be available to a limited beta of customers in March, will offer cable channels delivered ?over the top? to televisions anywhere there is an Internet connection regardless of provider. (Microsoft Mediaroom, for example, requires AT&T?s service, and Xbox has limited offerings for Comcast and FiOS customers). For the first time, consumers will be able to subscribe to content per channel, unlike bundled cable services, and you may also be able to?subscribe per show as well. Intel?s set-top box will also have access to Intel?s already existing app marketplace for apps, casual games, and video on demand. Leveraging the speed of current broadband, and the vast shared resources of the cloud, Intel plans to give customers the ability to use ?Cloud DVR?, a feature intended to allow users to watch any past TV show at any time, without the need to record it ahead of time, pause live tv, and rewind shows in progress.
Intel had hoped that GoogleTV and AppleTV would spur demand for Intel chips, but that having failed they poached much of Microsoft?s Mediaroom team. Much of the direction of Mediaroom came from the leadership of Jim Baldwin, who is now VP of this Intel initiative.
At Microsoft, Jim demonstrated that the technology to enable customers to watch TV over the internet using any device was feasible, but content licensing, the goals of ISP?s and bandwidth limitations previously stood in the way.
?In creating Mediaroom, we brought together key emerging technologies to create the world?s most modern television system: better video compression, higher access network bandwidth, lower cost single-chip devices, cloud computing; and added to it some great software to make it all work together seamlessly with a great user experience. Our goal was to provide technology to operators that will continue to delight consumers as the world of internet-delivered content unfolds.?
According to an Intel job posting, Jim joined Microsoft in 1997 as a part of the WebTV acquisition, and Jim has been a key architect of digital video technology for various products including the WebTV Plus, Echostar Dishplayer, DirecTV UltimateTV and Microsoft TV.
Along with hiring the right key players with the expertise needed to develop a revolutionary set-top box, Intel also has the technology to create a product unlike its competitors. Intel has been providing chips for set top boxes since the days of Akimbo, which had a similar vision as far back as 2005. Back then, though, no one had digital rights to content ? and up until now, no one wanted to risk unbundling the channels. This is clearly the biggest barrier for Intel ? but since Intel is used to betting billions on chip design, it has allocated a budget significantly larger than Apple or Google?s. While Silicon Valley measures investments in tens of millions, Hollywood often drops more than $100 million into a single movie. Intel came to the table knowing this, and so was able to negotiate the licensing agreements with Hollywood that other tech giants have never been able to.
Intel has made it clear to Hollywood they are serious about this product and dedicated to its longevity. Intel is also prepared to invest heavily in making it a success. In contrast, Apple, Google, and Microsoft have always viewed Hollywood as something of a hobby. (Steve Jobs even said as much of Apple TV). As Intel has approached Hollywood with much more dedication (and dollars), this is likely the single reason that Intel, more than any company before it, has the potential to really bring to consumers the things we have never seen in online content before, such as live sports, release schedules that match broadcast, and first episode through current libraries for video on demand.
Intel is scheduled to hold a press event at CES, where Intel will likely officially announce this new product. However, while industry insiders say a working version is scheduled to be ready for CES, it will likely be only for limited demos.
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