
Why Hulu Should Embrace Boxee - jasonlbaptiste
http://www.avc.com/a_vc/2009/02/the-valentines-day-breakup.html
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smoody
I haven't read all of the comments around this topic as I simply don't have
the time, but might this be about Boxee not having the systems in place to
allow Hulu to properly pay local affiliates a portion of the revenue generated
from commercials? Or perhaps Hulu doesn't want to pay out a portion to local
affiliates?

I appreciate Fred's argument re: it's just a browser, but Boxee is optimized
and intended for watching on a TV. If people are watching Boxee shows on their
TV, then they're not watching and/or DVR-ing the local affiliate versions
which might have local advertising, etc. (true that most DVR people skip
commercials, but some don't). Thus local affiliates could argue that Boxee
makes Hulu a direct competitor for their local TV viewing audiences. I would
argue, naively, that this is why you don't see nation-wide NBC, FOX, and CBS
channels on your cable box -- because it would cannibalize affiliate revenue.
But that, in effect, is what Boxee is creating.

I wonder if it would make a difference if Hulu were share revenue (or more
revenue as the case may be) with local affiliates and put systems in place to
allow affiliates to insert local advertising into shows based on a Boxee
user's location.

This, of course, doesn't matter for CNN, for example, because all of the money
goes into a single pot: The CNN pot. But that's not true with NBC, Fox, etc. I
don't think. Correct?

The one hole in my theory is AppleTV -- you can buy broadcast shows on Apple
TV, but perhaps the fact that they're commercial-free somehow makes a
difference or gets around a contractual obligation.

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drinian
Boxee is under no obligation to pay local affiliates. Hulu clearly has the
geolocation ability to make that happen, if they really wanted to. All that
Boxee does is provide a specialized Web browser that happens to be more useful
than Firefox when using a big-screen TV with your computer. They don't
circumvent Hulu advertisements or anything else, and there is nothing
preventing people from just using Firefox with their big-screen TV instead.
The content providers are wrong in this issue, plain and simple.

For the last time, they need to stop treating everything new as a threat to
their old revenue streams.

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minalecs
I think it was made pretty clear, that Hulu does embrace boxee, but it was the
content providers that pulled the plug. Without content from the providers
there would be no Hulu, so they had to cave.

~~~
ivey
This warrants repeating: Hulu is doing their very best to drag the content
providers into this century. Boxee gets this, which is why they complied with
a request from Hulu, without forcing the issue. Hulu asked, Boxee agreed, and
now Hulu tries to convince content providers to change their mind.

~~~
falsestprophet
I think boxee and this VC are obfuscating the important point that Hulu's
content providers and its owners are one in the same. Hulu is jointly owned by
NBC Universal and News Corp (owner of FOX and 21st Century Fox). So, in the
end, neither the stockholders nor the stakeholders support Boxee.

This is no surprise; why should they want to nurture a less lucrative
distribution channel on the same medium as their primary source of revenue?

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mdasen
There's a reason why content providers don't embrace Boxee. NBC and Fox
control Hulu. That makes it safe. Hulu won't start showing programming outside
of what the major content creators make. Boxee, with its open philosophy,
would welcome high-quality non-establishment content. If people get into the
habit of using Hulu, they don't have to compete with new content creators. If
people get into the habit of using Boxee, lots of people could start creating
content and having access to the same distribution channel. That's dangerous
for the studios who like to have near-monopoly conditions for their content.

I didn't say it was a good reason, just that it was a reason.

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mattmaroon
This is why Hulu should embrace Boxee if you own preferred shares in that
company. If you own NBC, not so much.

