In a recent blog post Hulu stated their content providers requested they “turn off access to our content via the Boxee product, and we are respecting their wishes”. Hulu is pulling their support for Boxee effective 02-20-2009.

Removing Hulu integration with Boxee is a lose/lose idea for Hulu, Boxee, Content Providers and Users.  Let’s break it down.

Content Providers:
The content providers want eyeballs because eyeballs mean revenue. To gain those eyeballs content providers want NEED to expand across multiple delivery services. Discontinuing a popular cutting edge LEGAL content delivery frontend like Boxee is shortsighted and hurts the content providers’ revenues.

Hulu:
Hulu is an early leader in delivering almost real-time media content via the Web. Boxee took the Hulu idea and enhanced it with direct integration into their (very slick) Media Center application. Viewing Hulu on Boxee is still a Hulu experience and it retains the revenue stream for the content providers.  Discontinuing Hulu on Boxee upsets a lot of loyal Hulu users who access Hulu content solely via Boxee. No more Boxee integration means less Hulu viewers. This hurts Hulu which hurts the content providers and Users.

Boxee (aka the users!):
Boxee has a loyal following in the Home Media Center space. Boxee is producing a socially integrated media center experience. Think Facebook for your Movies/Music and TV. The potential of services like Boxee are huge for Hulu and their content providers. The market Hulu is destorying by nixing Boxee consists of consumers that are Hulu’s IDEAL customer. Your average Boxee user will consume more Hulu content with a larger audience on their HDTV’s than the typical Hulu user chained to their monitor in front of their keyboard. Plus, Hulu/Boxee users can go viral with media via Boxee’s built in “recommendations” feature. Taking Hulu off of Boxee discourages a large subset of Hulu’s power users and encourages media torrents. This hurts the consumer which hurts Hulu which hurts the Content Providers.

How did we get here?
The problem is that the Content Providers agreed to sign up for Hulu but are poorly equipped to understand how Hulu, and their content, integrates with other “new media” products. When an application like Boxee writes their code to support Hulu the networks feel like their control on content distribution is slipping. The predictable result: the networks freak out and demand that Hulu discontinue Boxee support. This is short sighted. Content Providers want NEED Boxee as a legal frontend to the content which generates revenue for them on Hulu. However, Content Providers don’t understand the entire situation, feel threatened and would rather take their ball and go home. Dumb!

The media companies who want consumers to view their content so they can monetize the activity via advertising have just removed one of the most creative and legal ways for them to accomplish their prime directive with the added beneift of advancing the stereotype of clueless “old media” and alienating loyal fanbases.

What else can you say to that? While you’ll be discussing this article I’ll be resuming my commercial free torrents.

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