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In tandem with its Q4 report, CBS announced it plans to buy back $1B worth of shares in 2013,...

In tandem with its Q4 report, CBS announced it plans to buy back $1B worth of shares in 2013, thereby nearly doubling its repurchase commitment for the year. The TV network/studio owner repurchased $299M worth of shares in Q4, and had $2.51B remaining on its authorization at year's end. On the earnings call, CEO Les Moonves said CBS is talking with Intel (INTC) about a programming deal related to Intel's upcoming Web-based TV service. (CBS Q4: I, II)
Comments (6)
  • Intel is a components manufacturer, knowing little or nothing about consumer products, either design or marketing or equipment manufacturing. What they need is an OEM that does know these things.
    14 Feb 2013, 06:30 PM Reply Like
  • Arthur,

     

    I think this is an excellent way for Intel to branch out.
    As we know, lack of PC sales are hurting Intel, and mobile is a tough nut to crack, especially with ARM dominating.

     

    This venture by Intel does a couple of things. For one it gets an Intel box into the living room. Since we know it will be app enabled, we can assume it will therefore support games and other forms of entertainment for example music, movies, etc.

     

    Once this is in place, Intel has the beginnings of an ecosystem and can further monetize it through things like an App Store, in-app ads, in-app purchases, etc.

     

    This then opens the door for a family of Intel (equipped?) devices, phones, tablets, and computers to join the Intel ecosystem.
    So it's not a simple Web TV proposition, it's a foot-in-the-door directly to the consumers living room - the heart of the ecosystem.

     

    As Intel Media GM Erik Huggers says: “Intel is very interested in [having] a direct connection to the consumer,”
    14 Feb 2013, 07:20 PM Reply Like
  • what I don't understand is how this is different then the Cisco/Motorola set-top boxes already in the living room, or is it the case that Cisco/Moto can't see past life with the only "app" being Comcast?
    14 Feb 2013, 09:16 PM Reply Like
  • This is an uniformed commentary on a the internal workings of Intel. A company that is on top of the PC market can't know little or nothing about consumer products!

     

    As a recent Intel employee, retired on December 1 2012, I can say that significant resources are committed to determining the correct course(s) of action in the area of marketing. New products are never "flyers", they are well researched and strategized to a fairthewell.
    14 Feb 2013, 09:33 PM Reply Like
  • berylrb,

     

    It's much different.
    First off, Intel wants to offer smaller packages of content. Right now the smallest package of content on Comcast is what, $80? $60 maybe? Intel wants to offer packages priced more like a restaurant: I want this appetizer + this main course + this desert.
    For example, I want sprout for my daughter to watch, well Comcast just changed the rules on me and wants me to upgrade my subscription to get that Sprout channel that used to be included in my basic cable. I would essentially be paying for a bunch of other crap I don't want to get the 6 shows on Sprout that my little girl watches.

     

    Next, is apps. Yes, apps are a huge difference. Apps would allow gaming, investment tickers, etc .. all with the possibility of ad revenue. (not to mention the cost of the app.)

     

    Also, the "comcast app" as you put it is the worst app ever created, but because there is no competition it will never improve. Have you ever tried to locate a movie on Comcast? It's a friggin' nightmare.

     

    Is it in New Releases, Just Released, Top Picks, Titles A-z, or what? Amazingly often a new release will only appear in one of these and you need to try all of them to fine it! total crap.

     

    With Apps and an Intel box, I could see a tablet or smartphone as a remote with voice so you could say something like:
    "Record all of Big Bang Theory"
    "Play latest Big Bang Theory"
    instead of the stupid hunt-and-peck with the lame comcast remote you have today...

     

    I'm excited, I want this.
    If Intel launches this year with some solid content offerings and at least a reasonable apps story, I'm getting behind $INTC (even more than I am now.)

     

    Disclaimer: long INTC
    15 Feb 2013, 02:18 AM Reply Like
  • Intel entering into this space mystifies me. I am still trying to understand the compelling case that will increase Intel's bottom line with this decision.
    15 Feb 2013, 03:22 AM Reply Like
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