Intel is close to a deal to transfer control of Intel Media, the unit that has been trying to build a web-based subscription TV service, to Verizon, reported AllThingsD. People familiar with the talks said the two companies are in advanced negotiations, however it is not clear whether Verizon will take over control the entire Intel Media unit, or if Intel will maintain a piece of the web TV project or a say in its operations.
In January 2011, Intel hired Erik Huggers, the executive who had headed up web video for BBC, and Huggers began working on a plan to create an Intel-branded pay TV service, using an Intel-built set-top box. Huggers hired a team of 300 workers, built the box and created branding for the service, which was supposed to be named "OnCue".
Thousands of Intel employees have been testing the service in their homes during 2013. However, Intel was never able to secure the programming deals from TV networks that would enable commercial launch of the service. In September, the company began looking for strategic partners to help fund and distribute Intel Media.
