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Intel to Bow Movie Download Service

3 Jan, 2011 By: Erik Gruenwedel

The crowded transactional video-on-demand (VOD) space has a new entry.

Chip manufacturer Intel Jan. 3 said it would bow a movie-download service called Intel Insider, in March. It also plans to offer software (WiDi 2.0) that would allow users to stream content to their televisions.

Unlike VOD services offered by Amazon, Sears, Kmart, Best Buy, Blockbuster and Apple, among others, the Intel service would be incorporated in second-generation core processors for PCs and connected televisions.

Pricing for the movies — and presumably TV programs as well — on demand was not disclosed. Intel said the content would be available in 1080p resolution and on the same day as packaged media.

Content partners include Warner Bros. Digital Distribution and Best Buy’s CinemaNow — the latter likely subcontracting content similar to what Starz Entertainment does with Netflix.

Frost & Sullivan analyst Dan Rayburn said Intel’s announcement days before the begin the annual Consumer Electronics Association confab in Las Vegas underscores the growing influence of connected devices, and Hollywood’s desire to develop alternative revenue streams in the face of declining packaged media sales.

“It's amazing to think of how quickly the landscape is going to change for the way consumers find, purchase and shift the consumption of video from one device to another,” Rayburn wrote in a post.

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