Intel Corp, the world's biggest computer chip maker, yesterday signed a deal with a local broadcaster to develop Internet TV.

The US chip maker will invest $12 million in Shanghai Media Group (SMG) and provide technical support under a 2005 agreement.

The new media market - including interactive TV, mobile phone TV and IPTV - is expected to take off in China. IPTV is a digital television service delivered using Internet protocol over network infrastructure. It already has about 1.2 million users in a number of trial cities across China.

Its subscriber numbers are expected to soar to nearly 35 million by 2012, according to CCID Consulting.

"Global demand for Internet TV, or broadband online TV, is increasing rapidly due to the proliferation of Internet technology," Arvind Sodhani, president of Intel Capital, the company's venture investment arm, said.

"Intel is delighted to cooperate with SMG to develop the broadband online TV platform in China. Collaboration with Intel will stimulate the innovation and development of Chinese new media," he said.

Intel's multicore platform will be used to consolidate new Internet technologies, integrate innovative user experiences and visual interfaces and develop the next-generation video platform using virtualization technology.

SMG, one of China's most influential media and entertainment groups, was founded in 2001 after merging Radio Shanghai, Eastern Radio Shanghai, Shanghai Television, Oriental Television Station and Shanghai Cable Television.

(China Daily April 11, 2008)