Verizon Communications is diving deeper into content delivery with the purchase of Intel Media for an undisclosed amount. Intel Media has been working on set-top box technology and cloud-based content delivery, and initially planned to market products and services under the OnCue brand. But forging deals with content providers proved difficult for the chip maker, and reports that the business would go to Verizon have been public since late last year.
Verizon plans to integrate OnCue with its FIOS fiber-to-the-home unit, but also plans to use Intel’s technology to facilitate wireless delivery of video. OnCue’s compression and decompression algorithms should enable highly efficient delivery of video over Verizon Wireless’ mobile network.
“The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it,” said Verizon chairman and CEO Lowell McAdam in announcing the deal.
Intel Media employs roughly 350 people, and Verizon plans to make job offers to almost all of them. The deal is expected to close within the next few weeks.
“It will be interesting to see what kind of impact this deal will have on the Verizon Comcast relationship,” wrote wireless and cable analyst Jeff Kagan in a blog post. “I don’t see this having a major impact on the pay TV industry, but this could be a good move for both Verizon and their customers.”
Intel Media is the third in a string of recent content delivery acquisitions for Verizon. Last month the company said it will buy EdgeCast Networks, a content delivery network provider that specializes in e-commerce, media and entertainment. In November Verizon agreed to buy the assets and operations of UpLynk to facilitate the upload and encoding of live video events. Both EdgeCast and the UpLynk assets will become part of Verizon Digital Media Services.
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