Tuesday, March 13, 2012

Channels And Chips

As if the TV marketplace wasn't crowded enough, chip make Intel seems to now be making a play, with plans to launch a 'virtual cable' offering in the US. This seems to be a defensive move, since most second generation Google TV sets are ARM powered (yes, more anaemic performance ahead..): Intel has singularly failed to make inroads into the set top box market, largely due to the cost of its chips, but as STBs require more and more processing, to power web browsers, for example, there is s strong argument that users would be willing to pay for more powerful devices. Still this argument doesn't cut muster with cable or satellite operators, who largely have to amortise the cost of the boxes they provide to viewers. Still, this is an unusual move - bundling channels with chips seems a strange strategy.