• by Laurie Sullivan  @lauriesullivan, February 12, 2013

“Intel Inside,” the outdated brand tagline, doesn’t necessarily mean computer processors these days. Erik Huggers, the head of Intel Media, confirmed at a conference Tuesday that the chipmaker would introduce an Internet-based TV service and box this year.

As an industry in bloom, Hugger said Intel would provide the hardware and services direct to consumers that will let TV viewers watch live broadcasts and on-demand content. He said an Intel chip will power the service, but the company is working with the industry to determine how to provide live broadcasts.

The move prepares to support the first generation to consume more media online, than offline. Gen Zers, ages 18 to 23, spend 3.1 hours weekly listening to the radio online and 3.6 hours a week listening to the radio offline. They are also more likely to consume any type of media online, compared with the general population.

For example, they spend 3.9 hours a week watching TV online, compared with 1.6 hours for total U.S. adults, according to Forrester Research, which estimates four out of 10 consumers have Internet-connected TV.

Aside from Google and Apple, Xbox 360, Roku and variety of smart televisions allow consumers to connect to the Internet. NPD estimates 95 million connected televisions in 2016, up from about 43 million shipments in 2012.

Smart TV shipments are linked to content consumption making services critical to the growth of the industry, according to NPD. The report points to the availability of free content in China, where shipment market share accounts for 26%, and Western Europe 34% in 2011, growing to more than 40% in 2012 for both regions.