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Intel made a splash in February when it
confirmed its paid TV plans. At the time Intel Media boss Erik
Huggers said the service would roll out this year, but since then
the company is
said to have not closed any content deals, spurring questions
as to whether the release may be delayed. "We do have a launch
date; we just haven't disclosed it," said Mr. Free.
However launching with "enough content" doesn't necessarily mean
the service will roll out as completely as initially envisioned.
Mr. Free wouldn't confirm whether Intel has signed any deals with
TV programmers or outline where those talks stand. Instead he
outlined three types of content Intel is focused on securing for
its service: linear television, on-demand video for rental or
purchase and original Web video suitable for the living room. "It
does start with TV though," he said.
These days TV networks' prized programming is live sporting
events, which are often described as DVR-proof. That content
fetches a premium from advertisers, and accordingly major sports
leagues don't like to leave many pennies on the table when it comes
to making their games available for digital streaming. "Sports are
important to our consumers. We will have a compelling sports
proposition for them," Mr. Free said. Asked whether the leagues
have a seat at the table when Intel is negotiating with
programmers, he said it varies.
"It depends on the licensing structure of the deals. But you
might imagine we're engaged not just with the networks but with the
leagues but for different things depending on what it is we're
ultimately trying to put together," said Mr. Free. "Many of the
networks have cleared rights around sports for [digital streaming]
already, so there's not necessarily a need to have leagues at the
table in that context. It's really when there are exceptions that
we're trying to engage them."
Intel's negotiations -- whether with the networks or sports
leagues -- have been helped by Nielsen's decision
earlier this year to count cord-cutters in its household
viewership measurements. Intel had participated in those
deliberations and "absolutely" saw "a significant acceleration" in
talks with programmers thanks to Nielsen's move, Mr. Free said.
"That's not to say there aren't other blockers, but that was a very
large one for us in the sense of potentially preventing the content
from coming on the platform at all."
To supplement that content, Intel is developing a second-screen
experience for its service, though Mr. Free again kept a tight lid
on details. "The second screen provides an opportunity for
engagement, whether it's independently of the big screen or if it's
concurrently with it. For it to be effective for advertisers, it
has to be built into a common platform," he said.