By BRUCE MEYERSON=
AP Business Writer=
NEW YORK (AP) _ Intel Corp. is investing $200 million in a new
business to help Web sites meet demand for audio and video
programming from a growing number of Internet users with speedy
cable and DSL connections.
The world's largest manufacturer of computer chips announced its
foray into ``streaming media'' today, a bid to extend the company's
influence to an emerging market with few established players.
The plans include two broadcasting centers connected to a
dedicated communications network, bypassing many of the Internet
traffic jams that can interrupt the flow of heavy-duty Web content
such as movies, radio, live concerts or video conferencing.
Intel also plans to work closely with telephone and cable TV
companies to provide a smooth handoff when Web content crosses from
its network to the local link reaching a home or business.
The two broadcast centers, already under construction, will be
equipped with production and editing equipment for customers. The
first is scheduled to open in July in Portland, Ore., and the
second in London later this year.
The new Intel venture comes amid a mad dash by cable and phone
companies to upgrade their systems for high-speed Web services.
While a third of the nation's homes now have Internet access,
most still use a dial-up telephone connection. But while only about
3 million homes currently use high-speed connections, that number
is expected to multiply rapidly in the next few years.
``The increased availability of broadband connections to the
Internet is starting to create significant markets for using those
connections for streaming media,'' said Peter Christy, an industry
analyst for Jupiter Communications.
In addition to capturing a share of a hot market, Intel's
streaming media business may also drive demand for its main
product: high-speed chips needed to power computers that receive
and play the Web content.
``Intel realized the Internet was a constraint on people using
high-powered chips. When you get a DSL connection or a cable modem
connection, there's a lot of interesting things you can do that
require a more potent chip,'' said Christy. ``If by investing in
this they can invigorate the market for high-end personal
computers, it's certainly in Intel's best interests to do that.''
The new business has been operating on a trial basis since
February at an existing Portland facility with customers such as
Nasdaq.com and Golf Magazine. |
