Intel Reuters

American chipmaker Intel Corp is planning to launch an internet television service this year.

Announcing the company's plans of the new service at AllThingsDigital "Dive Into Media" conference on Tuesday, Erik Huggers, vice-president and general manager of Intel Media said, "We have been working for (the past) year to set up Intel media, a new group focused on developing an Internet platform," Reuters reported.

"It's not a value play, it's a quality play where we'll create a superior experience for the end user," he added.

The arrival of an Intel-powered setup box was speculated all throughout last year, and the tech world expected its debut at the Consumer Electronics Show in January.

With the launch of the upcoming service, Intel will be foraying into a new highly competitive market which has many global players like Apple, Amazon and Netflix. Intel is reportedly engaged in negotiation talks with content providers.

When asked about whether it had already signed any content deals, Intel said it is working on it and expressed confidence in bringing out an impressive device this year.

"There's a scenario where the TV recognizes that it's you and says 'Hey, I know what you like. I know what you want to watch', versus the environment we're in today where the TV literally is not interested in you at all," Huggers told Reuters.

The service and the set up box will be released this year. The box will come with Intel system-on-chip that will be equipped with a camera to steer content automatically.

"The model we envision is a model where live television and catch-up television live in the same paradigm," said Huggers.