Not sure if you are aware, but Intel has recently released a new chip called “Viiv” (read: vīv) that is aimed at the digital entertainment market. This means more movies, pictures and all sorts of multimedia. On its own, it is not such an interesting thing. Knowing that it is the content that drives the platform, Intel has made deals with content providers such as Eros, the largest international distributor of Indian films, New York-based CBS Corp.’s MTV, Burbank, California-based Walt Disney Co.’s ESPN and, not to be missed, Shanghai Media Group.

Now Intel never said anything about moving in on the Chinese entertainment market. If not, are they trying to appeal to Chinese abroad? I think it is more likely that Intel with try to market the new chip in China, but now since it is dabbling in providing content; this could lead to some unforeseen governmental issues. We will have to wait and see how it’s dealings with SMG turn out.

SMG, being government controlled probably won’t much enjoy if Intel tried to buddy up with other China based content providers in the future. Though, playing their cards right, I think Intel might make a niche for themselves, if even in the IPTV market. I really don’t see the boom in sale of entertainment centric PC’s in China. Why buy an expensive media PC when you can go to the local store and buy a cheap beige box for a fraction of the price, that for a fraction of the price, does essentially the same thing. For those less tech savvy, a TV with IPTV or a DVD player is sufficient.

We are at a time of great change in terms of digital entertainment. Between emerging technologies, government regulations, and consumer tastes, China’s future in this area may be difficult to predict. We will see in the next few years how it all pans out.

Update January 7:
Here is a more recent story covering the details of partnership between SMG and Intel- http://www.digitalmediaasia.com/default.asp?ArticleID=12427