Feeds

Intel retires hurt from streaming media biz

Too many players, not enough money

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Intel is to scrap its streaming media unit, less than a year after opening up for business. The 200 employees of Intel Internet Media Services will be offered jobs within the company.

Last May, Intel announced its intention to grab a flat slice of the streaming media market. The chip giant said it would spend a couple of hundred million bucks to build its position in streaming media, a market it reckoned would generate $2.5bn revenues in 2004.

However, the market grew too slowly and the competition grew too fierce for Intel's liking.

In an interview with Reuters, Intel spokesman Bill Calder said: "There just aren't as many customers and as many opportunities. That's not to say it won't develop, but it's over a longer period than we had anticipated." The company will work with other streaming media suppliers instead.

In its core business Intel is used to 80 per cent+ market share and gross margins in the high fifties to low sixties. The company wants to broaden its revenue base, but it's going to have a hell of a time finding a new sector that it can dominate and deliver those kind of margins. ®

Related Story

Intel ate my iCat

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.