December 8, 2009

Boxee, a Start-Up, to Offer a Device to Put Web Video on TV
By BRAD STONE
NY Times

http://www.nytimes.com/2009/12/08/technology/internet/08boxee.html?ref=technology&pagewanted=print


Boxee, a start-up that is trying to bring the boundless selection of Web 
video to the living-room television, said on Monday that it would put 
its software into a set-top box that will go on sale next year.

At an event in New York City, the company announced a partnership with 
D-Link, a Taiwanese manufacturer of networking equipment, which will 
make a device that will allow people to browse Internet videos on their 
TVs. The companies hope to keep the price of the device under $200.

Boxee collects videos and music from Web sites like Netflix, MLB.TV, 
Comedy Central and Pandora, and presents it in a visually friendly 
format that resembles a television directory, while adding some features 
from social networks.

The service has caught on with Internet aficionados who say it 
represents a future in which the wide selection of content from the Web 
wins out over a more limited television experience controlled by big 
media companies.

Up until now, Boxee’s software has only worked on a PC or Mac, although 
some savvy users have installed it on Apple’s set-top box, called Apple TV.

Boxee now wants to move beyond that limited user base. “Today the 
reality is that hooking up your laptop to your television, or putting 
Boxee on an Apple TV, is not a mainstream experience,” said Avner Ronen, 
Boxee’s chief executive.

Mr. Ronen said the relationship with D-Link was the first of many deals 
with consumer electronics companies. “A growing number of companies see 
a real need to bring Internet to the TV, and they realize people will 
pay a premium for devices like connected Blu-ray players and HDTVs,” he 
said.

Boxee is facing an increasingly crowded market for such devices. More 
and more Blu-ray players, video game consoles and HDTVs can connect to 
the Internet and access streaming media services from Netflix, 
Amazon.com and other companies.

Set-top boxes that perform similar functions have not been mainstream 
hits. Roku, a company that sells a box that primarily receives videos 
from Amazon and Netflix, says it has sold only a few hundred thousand 
devices.

But Boxee and its backers believe that these kinds of devices are too 
limited, and they draw comparisons to older mobile phones that receive 
only the Web services chosen by a particular wireless carrier.

Although Boxee has forged its own relationships with Web video sites, 
any company can make its videos available through the service. “This is 
all about consumer choice,” Mr. Ronen said.

Boxee also said it would introduce a more polished test version of its 
software by the beginning of next year.

Boxee, backed by $10 million in venture capital, has tried to bring into 
its service the network television shows posted on Hulu.com, a joint 
venture between NBC, Fox and ABC. But those networks do not want people 
able to receive the Web videos on their TVs, instead of watching actual 
broadcasts, which carry more valuable advertising.

As a result, Hulu has largely blocked Boxee from adding its videos. 
Boxee says it is currently working on a Web browser, based on 
open-source technology from Mozilla, maker of the Firefox browser, so 
its users can manually go to any site and watch the video there. “Its 
not as good an experience, but we want to make as much content available 
as possible on Boxee,” said Andrew Kippen, a Boxee spokesman.

James McQuivey, an analyst at Forrester Research, said such an approach 
could end up undermining the promise Boxee is making to customers who 
spend money on the set-top box. “If it’s not done with explicit 
permission, that content is always at risk,” he said. “There is no 
guarantee if you buy the box you will have all this content in perpetuity.”

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George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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