The rumor from back in October of Verizon picking up Intel's OnCue, a web-TV service, has actually come to fruition this week. Verizon officially announced that it will be purchasing Intel Media, Intel's media assets, in its entirety.
The terms of the deal were not disclosed, however we do know that Verizon gains access to all intellectual property rights that are used to make OnCue work. Verizon also said it will be working on keeping all of the 350 employees on the project. Both the management team and the Santa Clara office will also stay with Verizon, so for the most part, business will be as usual. Pending the standard approvals from the different commissions, Verizon looks to finish the acquisition by the end of this quarter.
On the purchase, CEO of Verizon Lowell McAdam, said,
The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it. Verizon already has extensive video content relationships, fixed and wireless delivery networks, and customer relationships in both the home and on mobile. This transaction provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation. We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices.
Unlike Verizon's latest video-streaming partnership with Redbox, the idea with this purchase is to fully integrate it with FiOS video to try and make FiOS a more viable and attractive option to consumers. Verizon also said the company will be looking to enhance current FiOS offerings with better search and discovery, user interaction and improve other areas all with the technology purchased from Intel. Combine this with the previous announcements of Verizon purchasing upLynk and Edgecast, both leaders in the video encoding and content delivery spaces, and Verizon is poised to really take over the video-on-demand market in the coming year.