Is Intel Abandoning Web-TV Project?

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Oct. 30 (Bloomberg) -- Bloomberg senior West Coast correspondent Jon Erlichman reports that Intel may be turning over its web-TV project to Verizon and looks at possible reasons why the company may be abandoning the project and what it could mean for Verizon. He speaks on Bloomberg Television’s “Bloomberg West.”

Plug on this so soon?

Greg there is a long road to getting to that answer.

This has been a roller coaster ride, emily.

Bloomberg had reported last year there was working on this set- top box and working with content players to get a deal in place.

Early this year, erik huggers, executive who had come over to intel from the bbc, said yes, we're working on getting this out to the public at some point this year.

By the summer, and other executive had confirmed we are still on track to make this a reality.

But at the fall approach, bloomberg had reported that there was a possible hardship in the works.

To get your question, there is new leadership at intel.

The new ceo has put a priority on getting intel chips into mobile devices, but not necessarily in every device.

I.e. in televisions, for example.

There is a big cost tied to a project like that.

So the challenges with getting content deals in place, per member, apple has been busy working on those, and that is not an easy task, even for a company like apple, coupled with the cost like a probably -- like a project like this, seem to be a couple of the key factors of why we have seen and felt totally change direction, reportedly, on this project.

Intel is not commenting on this story, but what does this mean for verizon?

If you think about what verizon has been doing, it is had some big ambitions when it comes to video?. you've seen it when it comes to the rollout of its fios service.

It has a big footprint, but it could be larger.

We have seen verizon think of other ways to get into video.

Orders ship with red box, which again could have a larger footprint.

Verizon really wants to go bigger and what might they have to do and video?

Quitted by direct tv or dish, could they potentially work out a deal with intel?

Even though they have a relationship with broadcasters tied to fios, deals to carry those different channels, this would likely be something different.

Verizon could, if this could all come together, they could've can -- competing with their own fios service through this until project because there is a whole different likely set of broadcasting agreement that would have to be reached.

All right, jon, our senior west coast correspondent, thank

This text has been automatically generated. It may not be 100% accurate.

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