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NBC Says Boxee Illegally Took Content from Hulu
Boxee CEO Avner Ronen fires back: "We don’t 'take' the video. We don’t copy it. We don’t put ads on top of it."
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February 09, 2010 | by Julie Jacobson

When Boxee was still an up-and-coming content aggregator, the company owed a good chunk of its popularity for putting a fresh face on Hulu.

Hulu was just one destination offered via the Boxee interface, which provides easy access to dozens of other streaming sites.

In February 2009, however, Hulu ordered Boxee (and TV.com) to cease offering Hulu content on their sites. Later, Hulu altered its format so third parties could no longer embed Hulu content – or at least they couldn’t do it as easily as before.

Third parties such as Request, however, have continued to “support” Hulu.

The Hulu/Boxee issue came up last week during a congressional hearing over the proposed merger between NBC Universal and Comcast. NBC owns 32 percent of Hulu, so there is some concern over potential antitrust violations if Comcast and NBC were to merge.

During the hearing, Rep. Rick Boucher, Chairman of the Subcommittee on Communications, Technology and the Internet, asked NBC president and CEO Jeff Zucker, “What about Boxee?”

Zucker replied:

This was a decision made by the Hulu management to, uh, what Boxee was doing was illegally taking the content that was on Hulu without any business deal. And, you know, all, all the, we have several distributors, actually many distributors of the Hulu content that we have legal distribution deals with so we don’t preclude distribution deals. What we preclude are those who illegally take that content.

Boxee CEO: “We didn’t ‘take’ video”

Boxee CEO Avner Ronen has some choice words about Zucker’s statement. He writes in his blog:

I’d like to set the record straight regarding Boxee’s access to Hulu. Boxee uses a web browser to access Hulu’s content – just like Firefox or Internet Explorer. Boxee users click on a link to Hulu’s website and the video within that page plays. We don’t “take” the video. We don’t copy it. We don’t put ads on top of it. The video and the ads play like they do on other browsers or on Hulu Desktop. And it certainly is legal to do so. …

There are now close to a million people using Boxee. When they watch shows from Hulu they are watching the ads and generate real revenues to NBC. We hope we will be able to work with NBC and offer more content and value to Boxee users as we believe a good number of our users will also be willing to pay one-time or subscription fees to access NBC’s content.

Avner further notes that it was not Hulu’s decision to lock out Boxee; rather, the request came from Hulu’s content providers.

Hulu CEO Jason Kilar wrote in a blog in February 2009, “Our content providers requested that we turn off access to our content via the Boxee product, and we are respecting their wishes.”

Does Hulu Have the Right to Block Aggregators?

Hulu was adopted by content aggregators because it provided an easy method for embedding its content; therefore, it hardly seems like digital theft for Boxee to avail itself of Hulu’s engine.

And surely, Hulu has the right to make its content less usable by third parties.

But if we see a merger between two content giants – NBC (plus Hulu) and Comcast – will they be forced to accommodate Boxee and similar aggregators to avoid the appearance of anti-competitive behavior?



Julie Jacobson - Editor, Electronic House; Editor-at-large, CE Pro
Julie Jacobson is editor of Electronic House and editor-at-large for CE Pro magazine, the trade magazine for home technology. She co-founded parent company EH Publishing in 1994.



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Comments (6) Most recent displayed first.
Posted by Doug  on  02/12/10  at  12:40 PM

If they allow these mergers then they should require the content providers to sell the content to any access provider (Telco, Satellite, etc.) at a marketprice, meaning no setting a price that is unreasonably high.

Posted by John Nemesh  on  02/10/10  at  03:33 PM

What gets me is that NBC flat out LIED to congress when they said that it was Hulu’s decision to block Boxee.  In fact, it was NBC, and specifically their CEO who asked Hulu to block access.  Isnt there penalites for LYING TO CONGRESS?  At the very least I would like to see NBC reprimanded.  Best case scenario would be to simply not allow mergers of this type.  I really fear what “Big Content” has in store for us, the consumers, when they own the content AND the delivery system.  My guess is that we will see much more restrictive systems in place that FORCE people to buy cable TV service in order to view content online.  Hmm…that sounds a lot like ESPN360.com (now renamed espn3.com) and Comcast’s own Xfinity online offering!  If you like that kind of “service”, then by all means, let the deal go through!  Personally, I cant wait until Congress passes Network Neutrality laws and relegates Comcast and their ilk to “dumb pipe” providers.

Posted by matt  on  02/09/10  at  06:46 PM

The Comcast acquisition of NBC is rather interesting. Comcast makes money from selling broadband internet connections. Some people pay for high speed internet to illegally download music, movies, and even tv shows (some from NBC). In this scenario, the consumer gets what he wants (tv shows when he wants for little or no money), the content deliver entity (Comcast) gets what they want (large # of subscribers), and the content producer (NBC) is measuring fewer viewers and thus losing advertising money. The only person making money in this scenario is Comcast, and how ironic that their coffers are now big enough to buy NBC.

Content producers and content delivery companies should have started getting in bed together a long time ago. (Sony is an excellent example.) Whether the deal to acquire NBC goes through or not, Comcast is vested in NBC to produce worthwhile content.

Posted by John  on  02/09/10  at  06:45 PM

What I dont get is why the content providers care at all. At least with DVR I can fast forward through commercials. Hulu makes you watch them so they actually get people watching the commercials than someone who had it previously recorded.

Posted by Julie Jacobson  on  02/09/10  at  05:53 PM

I agree Matt that a court might not honor a cease-and-desist request, but they still have every right to try to pressure Boxee and others to pay them some kind of fee.

But it seems like a silly decision on their part, given that Boxee was bringing their advertisers more eyeballs.

And, in the end, Boxee is partnering with clicker.com—a worthy competitor to Hulu. So Hulu seems to have lost.


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