Intel and CNN Form Alliance to Deliver TV Over Personal Computer Networks

Strategic Insights -

Intel Corp. and Cable News Network have formed a strategic alliance to test a new technology that allows businesses to deliver television over personal computer networks. The partnership marks a significant step in the convergence of television and computer technologies, enabling business users to view news broadcasts and video announcements on their screens. The test service, which will include CNN and Headline News, will be available at several locations next month.

Key Takeaways:

  • The alliance between Intel and CNN aims to deliver television over personal computer networks at businesses, using local area networks rather than specialized wiring or switching devices.
  • The technology will allow PC users to view news broadcasts in a small window on their screens, record programs on hard disks, and pull them at a later point.
  • The service will enable companies to see what sort of information business people want, their reaction to advertising, and how much they might be willing to pay.
  • The Intel technology, based on a computer software program rather than a piece of equipment, relies on an Intel compression technology called Indeo that can squeeze video images from 30 pictures a second to 10 to 15 pictures a second.
  • Analysts have projected that more than 29 million PCs with Intel 486 or Pentium microprocessors will be linked to local area networks by the end of next year.
  • The first customers for the still-unpriced service are most likely to be stock traders and financial services companies.
  • Intel may benefit from the service, as it may help boost demand for PCs powered by Intel chips.

Statistics:

  • 29 million: The number of PCs with Intel 486 or Pentium microprocessors expected to be linked to local area networks by the end of next year.
  • 10-15 pictures a second: The compressed rate of video images achieved by the Intel compression technology called Indeo.
  • Next month: The timeline for the allies to start testing the new technology.
  • Several locations: The number of test locations for the new service.

Sources:

  • "Intel Corp. and Cable News Network Form Alliance to Test New Technology"

(Source: Business Wire)