Intel is planning on facial-recognition technology for targeted advertising via its purported ‘virtual TV’ service.

Intel has yet to confirm its TV plans but a special report from Reuters says sources who are negotiating supply deals with Intel confirm it is planning a slimmed down cable type service and will use a set top box that can distinguish who is watching, potentially allowing Intel to target advertising. The set-top box pitched by Intel doesn’t identify specific people, but it could provide general data about viewers’ gender or whether they’re adults or children to help target advertising, sources said.

Intel thinks it can build a better set-top box and over-the-top subscription service to deliver TV content to consumers. A successful TV service using Intel technology would be a big step toward making its chips prevalent in more living room devices. While Intel’s processors power 80 percent of the world’s PCs, its chips have not achieved a significant presence in smartphones, tablets and other interconnected devices.

Intel claims that the new interactive features in its set-top box would add greater value to TV advertising and help offset reduced revenue from licensing fees for network owners.

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