Behind the 8 ball.

Intel has sold its never-launched Intel Media OnCue system, which planned to compete for cable TV viewers using online video, for a deeply discounted $200 million to Verizon Communications, according to media reports.

The would-be virtual cable competitor had initially put its technology up for sale for $1 billion but dramatically reduced its asking price to make a quick sale.

Intel proposed to launch its online competing cable system sometime this year, but pulled back after determining its business plan was untenable. The problem was programming costs — entrenched satellite, cable and phone company competitors receive substantial volume discounts off cable programming but an upstart like Intel would face much higher pricing.

The ongoing effort to establish usage caps or metering Internet usage has also been cited by other would-be competitors as a major deterrent to launch competing video ventures online which can chew up usage allowances.

Variety reports Verizon will use the Intel platform to launch a new TV Everywhere concept for its customers that will deliver the FiOS TV lineup online.

Intel also gets to solidify its working relationship with Verizon’s wireless unit.

Time Warner Cable TV subscribers in Southern California can now access local over-the-air television signals on the company’s TWC TV app, expanding the lineup of hundreds of cable channels to now include the major network affiliates — a significant gap in the “TV Everywhere” app for most customers.

Residents in Los Angeles and San Diego join those in New York and Kansas City that can now receive local over the air programming on their home computer, tablet, game console, or Roku box. Time Warner Cable requires viewers to subscribe to both its television and broadband services to watch, and only from your home’s Wi-Fi network.

The service is designed to bring value to Time Warner’s cable TV package and offer subscribers the opportunity to watch cable programming without an additional set-top box. Current licensing restrictions keep Time Warner from offering most television programming while on the go, but the cable company is attempting to negotiate those rights when programming contracts come up for renewal.

The major networks are not waiting for cable operators to negotiate with them, however:

• ABC: The network’s Watch ABC app has been available since the spring and offers live streaming of the local ABC station in eight major markets including New York, Chicago, and Los Angeles. Viewers must live within the viewing area to watch;
• CBS: The network has purchased part ownership in Syncbak which specializes in digital content delivery, but the network has not announced plans for a streaming app;
• FOX: In addition to Hulu/+, FOX wants to adopt mobile broadcast technology using the Dyle Mobile platform, which allows device owners to receive over the air television with the use of a special add-on antenna;
• NBC: NBC will follow ABC and offer live viewing of local affiliates over an app starting in large cities early next year.

The trend towards cable consolidation is no longer just limited to cable operators. Now programmers are looking to strengthen their position in cable carriage negotiations by building “must-have” packages of cable programming that could mean smaller independent channels could eventually get locked out.

Bloomberg News reports the board of Discovery Communications, owner of the Discovery Channel, is discussing a possible bid for Scripps Networks Interactive, which runs channels including HGTV and the Food Network.

Scripps is one of the smaller network owners, but one that has proven popular and profitable. But it is not tied to a media conglomerate or the cable industry directly. Discovery has been a part of the cable television lineup for decades. Cable TV billionaire Dr. John Malone controls 29 percent of Discovery’s voting rights, giving him significant influence at the company.

A combined operation would control these networks:

Discovery:

• TLC
• Animal Planet
• Oprah Winfrey Network
• Destination America
• Investigation Discovery
• Discovery Fit & Health
• Discovery Science
• Military Channel
• Science
• Velocity

Scripps:

• HGTV
• Food Network
• DIY Network
• Cooking Channel
• Great American Country
• Travel Channel

Some analysts suggest such a combination doesn’t make much sense for Discovery, which has been focused on expanding operations internationally.

But other bidders might surface for Scripps, reports Bloomberg, which may be a complementary business for 21st Century Fox, Time Warner or Viacom, said Eric Handler, an analyst at MKM Partners, in a research note.

It’s happy days at Comcast’s marketing and public relations department. How does a cable company pocket an extra $1.50 a month from 21.6 million cable TV customers without facing the wrath of the masses? Blame it on greedy broadcasters and quietly bank up to $32.4 million a month in new revenue.

Comcast wants to break out the cost of some of its programming disputes with local stations from your monthly cable bill and add an extra $1.50 monthly surcharge the company is calling a “Broadcast TV Fee” starting in the new year.

Comcast isn’t promising this $1.50 fee covers the total cost of licensing local stations for cable carriage, and they have no plans for similar surcharges for cable networks that have also been known to ask for a lot at contract renewal time. Customers may not realize that in some cases, the local NBC station just so happens to be owned by Comcast-NBC, offering easy opportunities to boost the asking price without too much trouble from co-workers at Comcast Cable.

Broadband Reports notes that isn’t the only new fee coming soon to a Comcast bill near you, starting Jan. 1. The company is also raising prices for cable television by $1-2 for many tiers, increasing the modem rental fee another dollar to an unprecedented $8 a month, and jacking up rates by $2 a month on almost all levels of broadband service.

Time Warner Cable is following Comcast offering customers that don’t care about the majority of cable channels the opportunity to subscribe to HBO with a bare bones cable TV package.

“Starter TV” offers a stripped down package of 20 channels, mostly local over-the-air stations for $19.99 a month for the first year targeting cord-cutters and cord-nevers that don’t subscribe to television packages. A bundle including Starter TV and HBO is now being marketed on Time Warner Cable’s home page for $29.99 a month.

Time Warner Cable has dropped the “digital TV”-branded plans in favor of “Preferred TV.”

The lineup in many cities may include fewer than 20 channels, depending on the number of local broadcasters. But most customers will get:

• Local ABC, CBS, NBC, FOX, PBS, and CW stations;
• Galavision, Telemundo and Univision (Spanish), either as a national feed or from a local affiliate, if any;
• C-SPAN 1/2/3;
• QVC, ShopNBC, and HSN home shopping channels;
• TBN

There are a variety of associated equipment fees that will raise the final price well above $30 a month, but for those who just want HBO and local broadcasters, Time Warner Cable is providing a way to avoid paying for lots of networks many customers never watch.