Intel to scrap streaming media unit

Intel Corp. is to close down its nine-month-old Internet Media Services (IMS) unit by the second quarter of this year, it announced Tuesday. The move will affect customers such as Quokka Sports, which use the service to distribute streaming multimedia content.

"We will be winding down operations by Q2 of this year," said Alison Pugh, IMS sales and marketing manager for Europe, Middle East and Africa.

The move was prompted by overcapacity in the market for streaming media services. There are "a lot of competitors, but not a lot of growth in the customer base," she said. The recent shake up in the dot-com sector means that fewer entertainment companies than expected have succeeded in building sustainable business models in the streaming media market.

"Video and audio are very much the next wave of applications and where we're going in terms of technology," Pugh said, but for streaming media services, "There really isn't a market for us."

Intel, in Santa Clara, California, can be reached at +1-408-987-8080 or at http://www.intel.com/.

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