Intel is offering to pay 75% more than traditional cable rates in a bid to try and secure programming deals for the firm’s new television service.
It is said to be talking to media companies in this regard, according to sources familiar with the talks.
A person familiar with the deal was quoted by Reuters as saying that CBS, News Corp and Viacom have reached agreements with the chip maker as to how their content would be distributed on the service, which is slated to commence in late 2013.
Intel, however has not yet closed any programming deals, the sources privy to the talks told the news agency.
Considerable advance has been made by Intel on subscriber fees it is willing to pay since the negotiations began, said a source.
Media companies, such as large cable companies, would like to pay more to operators with more viewers, while smaller or newer entrants are charged higher prices.
As Intel’s TV service is yet to take off, it will be more likely paying a premium, according to all the sources.
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Earlier in February, Intel had announced its plans compete with Apple, Amazon and Google. It said it would provide a set-top box and service that would offer live and on-demand programming.
Intel Media head Erik Huggers said that he was planning to offer customers smaller bundles of content compared to those being offered by cable and satellite operators at present.
But Intel needs to close deals with the top five or six media companies in the US if it wants to secure most of the popular TV channels.
