Intel has confirmed that the company will be launching an Internet TV service sometime this year. The announcement was made at the All Things Digital’s “Dive Into Media” conference. 

The company is said to be in negotiations with content partners at the moment. What is confirmed though is that Intel will ask users to buy a set-top box, which will stream live TV and movies. "We have been working for (the past) year to set up Intel media, a new group focused on developing an Internet platform," Huggers said. "My kids may watch programming geared towards them, and I'll watch programming geared towards me," Huggers said, according to AllThingsD. "If there's a way to distinguish who is watching what, advertisers can then target ads at the proper parties."

Reports of Intel working on a streaming service were first covered by the Wall Street Journal in March 2012. But, it will be interesting to see how Intel works around certain issues. The first being to convince users to but a separate set top box for this service. The second is licensing issues, and the geographical restrictions in the way of global play. The third is how Intel gets around the bandwidth caps that ISPs tend to put on connections, globally.