Intel Moves to Give Itself a Key Home Entertainment Role
SAN FRANCISCO — Its chips direct the inner workings of personal computers, and now Intel Corp. is sliding aggressively into the director's chair as it tries to shape the PC's evolution as an entertainment device.
The world's biggest chipmaker has struck deals in recent weeks with a range of companies well outside its traditional relationships with computer manufacturers -- for instance, with TV networks British Sky Broadcasting and France's Canal Plus, digital recorder maker TiVo Inc. as well as music download services Napster and VirginMega.
Intel's aim: To position its upcoming Viiv platform as central to the growing market for online entertainment and essential to the digital living room.
Viiv (rhymes with five) computers, expected to debut early next year, are designed to make it easier to watch TV or movies over the Internet and manage collections of music, video and photos.
"These kinds of content experiences are going to explode, the way the Internet exploded 10 years ago," says Kevin Corbett, general manager of Intel's Content Services Group. "But it's got to be done in a way that the mainstream consumer is going to get it. One step is having a technology company like Intel pull those pieces together."
By allying with content producers and device makers, Intel hopes to establish Viiv as a brand with as much cachet as its Centrino technology enjoys in wireless computing. All devices, services and applications would carry a tag that invites users to "Enjoy with Intel Viiv technology."
Viiv, though, "is a much more complicated effort than Centrino, which was a bundle of hardware technology that a PC maker could pick up and a buyer would trust," said Rob Enderle, principal analyst of the Enderle Group. "Viiv goes much beyond that -- it's trying to redefine the overall ecosystem."
With Viiv chips and technologies, Intel hopes to control a digital environment in which video and audio can move seamlessly around the world and around the house. PCs would work with televisions and digital recorders and portable devices so people could move their entertainment wherever they wanted.
That sort of integration requires coordination before devices roll off production lines or websites go online. A downloadable movie, for example, would have to be encoded with the proper software to take advantage of Viiv's technology. And portable devices would need to be Viiv-compatible to play the movie on the go.
