The two hottest words on Twitter right now are "Boxee" and "Hulu". Two words that didn't exist two years ago, but their on many people's lips right now.
Why?
Because as reported by TechCrunch, Hulu just pulled the plug on Boxee's (the uber-awesome free media center add-on for PCs, Macs, Linux, and Apple TV, and recipient of a nice recent write-up in the NYT) ability to stream Hulu content.
This is a move that perplexes me.
The only sense I can make from this is that content providers (to Hulu), believe that since Boxee enables streaming content (on-demand) on TVs, this will eat into consumption of the same programming (live) on TV, thereby putting a dent into ad revenue.
But Hulu already runs advertising on all this content. So what's the problem officer?
I get why Hulu would pull out of TV.com. That's a matter of pure competition. But Boxee's userbase is hardly large enough to compete with television in general. And ad revenue is still being generated from Hulu streams.
Is this an example of over-litgiousness? Is it Hulu caving into a C&D letter? Do these make my butt look big?
Share your thoughts in the comments.
**UPDATE** Here's the official Boxee Blog on the news.
** UPDATE 2** Peter Kafka at WSJ's AllThingsD weighs in with (a very valid) conspiracy theory involving the cable co's. (Maybe you were right after all Greg-in-the-comments).
Makes no sense at all...trying to figure it out. A few thoughts, but just not sure - there is NO logic in this:
- do content providers feel that Boxee use would eat into overall site traffic numbers on Hulu AND their own sites? But they wouldn't just look at traffic as success (I hope), they would track how often files are being streamed too? (and let's not forget the advertising is still there)
- doesn't Hulu in and of itself already eat into the TV programming #'s?
- why force users to watch thru laptops/computers vs TVs (assuming you aren't connecting your laptop to your TV)
- technically, doesn't apple TV/itunes create the same issue (revenue is just from a different source...)
Would LOVE to know the rationale.
Posted by: Jen | February 18, 2009 at 10:43 PM
My guess is that Hulu is talking to Time Warner Cable, Comcast, and other Cable Providers about putting their software on those boxes. Those guys might have more to offer if Hulu grants some kind of exclusivity.
Posted by: Greg march | February 18, 2009 at 11:53 PM
But according to Hulu, it was the content partners that requested the action be taken...
Posted by: Ian Schafer | February 19, 2009 at 12:00 AM
this is terribly disappointing. i'm in the alpha (are they still on alpha?) but haven't activated it yet. i'll be sure to bring this up at the 'hulu in front' i'm attending next week.
Posted by: matt. | February 19, 2009 at 12:16 AM
cable angle is a strong possibility, the exact reason why i love boxee - get rid of my $150+/month cable bill. but i am STILL going to ditch cable...regardless of Hulu on boxee or not. Apple TV/ITunes, connecting my laptop or ipod to LCD...all options. And I believe majority is smart enough to know this/find a work around.
Posted by: Jen | February 19, 2009 at 12:11 PM