Intel TV Negotiations Offer Content Providers 75 Percent Higher Rates

Executives working on the Intel TV offering are offering content providers rates up to 75 percent higher than traditional cable providers.

Sources close to current negotiations claims that Intel wants to enter the market as a newcomer, and content providers typically charge more for operators with a smaller user base.

In a Reuters report, sources claim that Intel’s aggressive move may very well affect pricing across the entire cable TV and satellite provider markets.

The report suggests that Intel has already secured agreements with CBS, News Corp., and Viacom. Intel Cable is also working with NBC Universal, but those negotiations are believed to still be in the early stages.

Intel is believed to be offering somewhere in the vicinity of $7.72 to $9 per subscriber in order to ensure that all major providers of TV content grab at a deal.

The Intel TV announcement was made in early 2013 and signals the company’s shift to a market that offers a bit more stability than the current PC market it has watched shrink in size.

Originally, experts believed Intel would attempt to roll out its new platform on a city-by-city basis. If that fact was true, the company could have avoided some of the hassles associated with negotiating for content on a national scale.

By securing a full lineup of content providers, Intel appears ready to more aggressively target the likes of Comcast, Time Warner, Verizon FiOS, and other content providers.

While negotiations are still ongoing, the team at Intel is expected to roll out Intel Cable by the end of 2013.

Do you think Intel TV and its set-top box can actively compete with the likes of Apple TV, Roku, Smart TVs, and various other gadgets that already server customers looking for non-traditional TV options?