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Verizon In Talks To Take Over Intel Media's OTT Video Project: Report

Intel is close to inking a deal to transfer all or part of Intel Media, the unit that is developing an over-the-top video subscription service, to Verizon Communications, AllThingsD reported Wednesday.

AllThingsD characterized the talks as being in “advanced negotiations,” but noted that it’s not clear if Verizon is angling to acquire all of Intel Media or just the piece that is developing the OTT video product, reportedly to be called OnCue.

If Verizon is successful, the acquisition could position it to deliver subscription video services outside its traditional FiOS TV footprint, so long as it has secured the distribution rights to do so.

Intel Media and Verizon both declined to comment.

Last month, sources confirmed that Intel Media’s aspiring shot at creating a “virtual” MSO was in jeopardy of missing its 2013 launch window and facing the possibility of having the project shut down if it failed to assemble enough content deals on its own or secure a partner to help it generate a compelling enough over-the-top video service.

Previous reports indicated that Intel Media had been shopping the project or seeking partnerships with Amazon, Samsung and Netflix. An industry source told Multichannel News that Intel Media has also tried to engage with Liberty Media about a partnership, but that Liberty had shown no interest in pursuing it.

Intel Media has been  testing its OTT subscription video service in Oregon, Northern California and Arizona. It hasn’t announced any programming deals yet, but Intel Media execs have openly discussed plans to go after the saturated pay TV market with flexible bundling options.