07.10.2013 09:48 AM
Samsung acquires Boxee, intensifies competition for streamed content
Samsung is now competing head-on in the technology with arch rivals like Apple, Roku and Intel.

With Boxee now owned by Samsung, the evidence is clear that major technology players are consolidating around so-called “over-the-top” video streaming devices as the gateway to a coming seismic shift in television.

Samsung is now competing head-on in the technology with arch rivals like Apple, Roku and Intel.

In the meantime, Boxee said it will cease support for its cloud-based DVR service, called Cloudee, effective this week.

“Joining Samsung means we will be able to work on products that marry the best hardware and software in the TV space, products that will be used by tens of millions of people and will help to shape the future of TV,” Boxee said in a customer announcement on its website.

As for Cloudee, the statement said, “We realize many of you loved the service, and we’re sorry it won’t be available moving forward.”

The transaction is estimated to be about $30 million, reported "The Marker," a technology publication based in Israel.

Samsung said the acquisition would “help us continue to improve the overall user experience across our connected devices.” The company is expected to bundle Boxee’s technology into its smart television sets and other consumer electronics devices.

Boxee, founded in 2007 and based in New York, raised $26.5 million in three rounds of funding from investors including General Catalyst Partners, Pitango Venture Capital, Softbank NY, Spark Capital and Union Square Ventures. It has 45 employees.

Avern Ronen, CEO of Boxee, will work for Samsung, as will the other Boxee staff members. Boxee began as a software application for TV-connected PCs, but the company stopped making that product last year to shift to selling a $99 set-top box with the Cloudee DVR service for $9.99 a month. The set-top box, whose sales will also cease, was manufactured by D-Link.

A new set of basic TV encryption rules handed down last year by the FCC allowed IP-based retail devices, including Boxee, to receive basic TV tiers without a CableCARD from several cable companies, including Time Warner, Cox Communications, Charter Communications, Cablevision Systems and Bright House Networks. 

The Boxee sale comes among a flurry of activity involving the IP-based competitors. Roku, with five millions units sold, announced on May 29 that it has received a $60 million investment. Two new Roku investors participated in the Series F round — the institutional investor and Hearst Corporation which is known for its diversified media and information assets. They join prior Roku investors, including British Sky Broadcasting (BSkyB) and News Corporation in the Series F round.

Apple TV, meanwhile, has added the HBO Go and WatchESPN apps and is reportedly poised to strike a TV-Everywhere deal with Time Warner Cable. Intel has said it plans to introduce a new Internet service later this year.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Tuesday 03:07 PM
WMUR-TV Says FAA Drone Rules Preclude ENG
The FAA’s current rules and proposed ban on flight over people, requirement of visual line of sight and restriction on nighttime flying, effectively prohibit broadcasters from using UAS for newsgathering. ~ WMUR-TV General Manager Jeff Bartlett

Featured Articles
Exhibitions & Events
Discover TV Technology