Finally, Intel and Verizon has jointly and officially announced that its pay-TV startup project, OnCue to United States second largest communications company, Verizon Communications.
Last December, we featured a story based on speculation, which suggested that Intel could sell its Internet TV product to Verizon and that too for a $200 million and before even releasing the product to the market. Prior to selling OnCue project to Verizon, Intel was looking for a $500 million offer, but ultimately it had to satisfy for what Verizon is offering (exact price details not revealed yet!) and it regain focus to improve its traditional chipset business.
Originally, OnCue was designed to stream pay-TV programs over the high speed internet, that could possibly haunt cable-TV services. Intel’s OnCue project includes set-top boxes, servers and streaming applications to stream the content over mobile devices and televisions.
With the completion of the deal, Verizon will be getting all OnCue related intellectual properties as well as all the 350 employees working on the project. This means that the second largest carrier will be either continuing the project or dilute/integrate with its current Redbox Instant streaming service. Either way, Hulu and Netflix should watch out!