Intel plans to launch online TV service this year

By Ronald Grover and Noel Randewich

DANA POINT, California (Reuters) - Intel Corp plans to launch an online television service this year that will stream live TV as well as provide content on demand, confirming reports that the world's top chipmaker is getting into the media market.

Intel is currently negotiating deals with content providers,

Erik Huggers, vice president and general manager of Intel Media, told the AllThingsDigital "Dive into Media" conference on Tuesday.

"We have been working for (the past) year to set up Intel media, a new group focused on developing an Internet platform," Huggers said.

Intel has struggled to get a virtual television service off the ground, due to unwillingness on the part of major media content providers to let Intel unbundle and license specific networks and shows at a discount to what cable and satellite partners pay, according to sources.

It has kept its strategy to launch a TV service, based around a set-top box, under wraps for months.

(Reporting By Noel Randewich; editing by Andrew Hay)