Wednesday, August 12, 2009
Web Video Darling Boxee Gets Another $6 Million: Are Zero Revenue and Big Plans Worth $25 Million?
Yet another sign that revenue-free start-ups can still attract investors, given the right pitch: Boxee, the software company that makes it easy to get Web video onto your TV, has raised a $6 million B round led by General Catalyst. I’m told the new round pegs the company’s value in the $25 million to $30 million range. What’s the appeal? The chance that the company could play a role in the disruption of the $70 billion TV business.
What does it take to add a third player to a joint venture between two media conglomerates? More than four months of negotiations. Tens of millions of dollars help, too. That’s what finally got Disney to join up with GE’s NBC and News Corp.’s Fox in Hulu, the fast-growing Web video site. Here’s what that means for the three networks and the rest of the Web video business.
Just in case anyone was wondering: Hulu, the Web video service that lets you watch Fox and NBC shows on your computer, really doesn’t want you to plug that computer into your TV. And Boxee, a start-up that makes it easy for you to plug your computer into your TV so you can watch Web video, doesn’t care.
Last month, Hulu yanked its content off of Boxee, the buzzy start-up that makes it easy to get Web video from your PC to your TV. Today, Hulu’s stuff is back on Boxee, but without Hulu’s permission. A victory for technology in the battle against dated business models and walled gardens? Sort of. But not a resounding one.
Even in the worst of times, people are supposed to hold their TVs close to their hearts: Turn off the heat? Sure. But don’t you dare take my cable away. So this can’t be good: Cable giant Comcast turned in a fourth-quarter report card this morning that beat Wall Street’s revenue and earnings expectations. But it lost more basic subscribers than analysts had expected and added fewer higher-end digital subs than anticipated.
