Intel has deep pockets and if their history as an aggressive marketer is any indication, they would be willing to take an initial loss if they thought they would be able to make a long term profit off of the service.
I've just found that there are a few tech companies big enough and aggressive enough that would be folly to entirely write off - Intel is certainly one of them.
As much as Intel is a large company, as much as this is technology front, and as much as I like someone like Intel doing this, still can't understand the reasoning why Intel would be the one doing this, I mean there are plenty of possible startups and others who would be ideal, a cpu company leading the way for broadcast TV is kinda makes me scratch my head and think why?
[quotemsg=11057964,0,155232]Time Warner Cable and other cable TV providers have reportedly pressed content owners not to strike a deal with Intel and other Internet TV providers, fearing that customers will cut the cord. But Intel seems confident that it will have a deal in place before Black Box launches at the end of 2013.[/quotemsg]
They can be confident all they want, it's still got an incredibly low chance of happening. Even Google and Apple couldn't do it, and they were just as serious about it as Intel. I doubt Intel will make any more headway. Cable companies' profits rely on users paying for channels they'll never use (such as ESPN which is hugely expensive), so a la carte streaming is fundamentally incompatible with this business model. The only way Intel will strike any kind of deal is somehow convincing cable companies to drop their decades-old market strategy and completely change their profit model.
This will just end up being a huge loss for them once they hit the content deal wall, just like with Google and Apple.