Intel is betting on facial recognition technology for targeted advertising and a team of experienced negotiators to convince reluctant media partners to join its new virtual TV service. So far, however, implement the service has been a challenge because most of the large media groups are not willing to allow Intel disassemble programming packages and license channels and programs at a price below that paid by the partners of these companies in the pay TV sector.
Intel, the world’s largest maker of chips, kept quiet about the strategy for launching a dry cable TV service , but you must take risks to initiate activities in a completely new line of business. According to five sources that have been negotiating for months with Intel, the company is emphasizing a decoder that it would employ the technology to distinguish who exactly is watching a particular program, which could allow for targeted advertising.
The decoder has been proposing that Intel does not identify the person specifically, but can provide data such as gender and age and thus help direct advertising, said two sources. Intel’s plans to put in the middle of Silicon Valley battle for control of the living rooms.
Large companies such as Apple, Amazon and Google, believe that U.S. Cable is open to change for reasons that will change the viewing habits of the increased cost of production programs. The U.S. cable moves $100 billion annually and is under the domination of large distributors, such as DirecTV and Comcaste-and content creators, such as Disney and Time Warner.
Although none of these companies have made great strides in the market until now, Intel believes will be able to develop a decoder and a subscription service program to provide higher quality TV content to viewers, even though this market is new to intel.
A TV service and successful technology-based Intel would be a major step to expand its presence in its home electronics chip.