New connected TV offering could dramatically alter ad marketplace

One connected TV offering currently in the works by Intel has the potential to dramatically boost the technology's appeal.

Posted on Jan 2, 2013 by YuMe

Although internet-enabled televisions are well liked with adoptees and video advertisers, the technology has yet to become as popular as other recent innovations like the tablet in recent months. However, one connected TV offering currently in the works has the potential to dramatically boost the technology's appeal.

At some point over the next few months, microchip manufacturer Intel plans to develop and release a web-based paid television offering plus an associated over-the-top (OTT) device to provide internet access to a TV set, The Wall Street Journal reported. The kit is expected to be launched this year.

According to the news source, the offering would have Intel functioning as a "virtual cable operator," with channels and applications provided via an all-in-one package. However, PCWorld reported that one of the main differences between Intel's plan and programs already on the market is that this proposed system would allow consumers to pay for individual channels or even single shows instead of paying more for undesired content.

"Intel, whose chips serve as calculating engines in most computers, has long hoped to move its technology into TV sets or set-top boxes," wrote the WSJ's Don Clark and Christopher Stewart. "Along the way, it has teamed up with other technology companies seeking to exploit the Internet to offer consumers more content options."

Why Intel could radically disrupt the connected TV scene
Although obstacles to full implementation remain for Intel, One of the main reasons why the plan is making waves in the connected television marketplace is because such an offering would be one of the first times a major technology manufacturer has tried its hands at making internet-enabled TVs more commonplace.

Another potential benefit of Intel's proposed connected TV service, according to Forbes, is that it would be available to just about anyone. Current offerings typically require consumers to use one particular internet service provider. For example, Xbox has limited options for customers using Comcast or Verizon FiOS.

With this package, GigaOM reported that Intel wants to create a comprehensive and consumer-friendly service that will do what Google, Microsoft and Apple have yet been unable to do: Revolutionize the connected TV marketplace and make its offering ubiquitous in American living rooms.

"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," Forbes's Kelly Clay wrote. "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."