Intel delays TV service to 2014

The chip giant is seeking partnerships with companies such as Amazon to save OnCue, its Internet-based video service, according to Variety and The New York Times.

Intel at CES earlier this year. Josh Lowensohn/CNET
People waiting for Intel's Internet-based TV service will have to wait a little longer.

The company has delayed its product launch to 2014, missing its plans to offer the service by the end of this year, according to reports from Variety and The New York Times.

The later launch date gives Intel more time to secure partnerships with companies such as Amazon.

Intel declined to comment.

Intel earlier this year revealed that it plans to launch hardware and software that lets users watch live TV, on-demand programs, and other content in their homes and on mobile devices. The subscription service, dubbed OnCue, will deliver the programming over a broadband Internet connection, known as "over the top."

However, the product has faced some hiccups. The company redesigned its box to remove a camera due to privacy concerns. It also has struggled to reach content deals. Time Warner Cable and other cable TV providers have been pressuring channel owners to shun pacts with Intel and other Internet-based TV providers, but Intel long has said it would have deals done in time for a 2013 launch. The company has pretty ambitious efforts in the Internet-based TV business, but a weak launch could set back its efforts or kill the business entirely.

News recently broke that Intel has been looking for a partner to provide funding and distribution to get its set-top box to market. Amazon is one company reportedly talking to Intel, and the New York Times reported that talks are in advanced stages. However, Amazon is said to be working on a set-top box of its own.

Intel has been seeking new areas for growth as its core PC market slows. It was late getting into mobile, but it tried to get ahead of the pack in TVs. The company hired hundreds of people, including former Microsoft and BBC exec Erik Huggers to lead the TV business, and it has been testing the service in employees' homes . However, Intel's new CEO, Brian Krzanich, is more hesitant toward jumping into the consumer market than his predecessor, Paul Otellini.

 

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