Intel killed its internet TV project because it couldn’t make content deals

Intel spent much of the last year talking up its ambitious plan to launch an internet TV service — but its grand plans eventually fell by the wayside. Now, we’re hearing why: new CEO Brian Krzanich told Recode that Intel’s plans went up in smoke because it wasn’t able to get the content it needed. “When you go and play with the content guys, it’s all about volume,” said Krzanich. “and we come at it with no background, no experience, no volume. We were ramping from virtually zero.”

Verizon has been rumored to be the front-runner to purchase Intel’s failed venture, and Krzanich’s quotes make it sound like they’d be a natural match for what Intel has developed thus far. “What we’ve said is we are out looking for a partner that can help us scale that volume at a much quicker rate,” he said. Verizon already has extensive relationships with content providers for its cable services — the hardware that Intel’s been building could eventually power Verizon’s content network if the deal comes to pass. Krzanich still sounds proud of that hardware, saying that Intel build a “great device” with “great technology.”

Krzanich’s admissions come after earlier reports said that Intel’s new CEO decided not to focus on TV almost immediately after he took over in May of last year. Breaking into the TV market would have ultimately been to costly and too much of a distraction to Intel, particularly as he tried to focus Intel’s efforts on two bigger threats: the declining PC industry and Intel’s lack of progress in the fast-growing mobile and tablet markets. The saga of Intel’s failed TV venture still isn’t quite over yet, though — despite the rumors of Verizon’s interest, the company hasn’t sold off its work just yet.