Boxee announced today that they have raised an additional 6 million in a series B round led by General Catalyst. The company will use the money to bolster their software and extend it to TV connected devices.
Roku meanwhile made news yesterday when they announced they have added MLB.TV to their growing list of content. Several weeks ago Blip.TV made news when the company announced they will soon deliver video to Roku, TiVo and Microsoft CEs.
All of this is a major threat to cable and to a lesser extent broadcast TV, which is being undercut as more consumers watch content on devices traditional media cannot control. It also opens up far larger audiences to IP delivered independent content without the existing rights issues that traditional content companies face.
Blip.TV has done an incredible job doing deals which will increase the user experience and audience for their content. If your TV VOD options include Blip programming directly alongside TiVo’d episodes of The Office it’s a lot easier to find and become a serial viewer of that content. Plus, if you’re a Blip.TV producer you are not already earning TV ad dollars so you’re more flexible with the available ad formats and viewing options.
For content companies like MLB, which have been traditionally forced to deal with TV to reach a larger audience, the ability to deliver content online gives them added bargaining power which will allow them to cut better deals. By allowing existing MLB.TV subscribers to watch via Roku on their TV they are effectively undercutting DirecTV which charges about twice the price for their Extra Innings package.
DirecTV still has the advantage of offering HD feeds, and it will be some time before U.S. networks are at a point where they can sustain HD online for most viewers, but it won’t be long before that cost/benefit decision leads more to watch on MLB.TV over DirectTV and makes MLB capable of selling advertising to a TV size audience over IP. Other content companies should take note, that true convergence point is getting closer by the day.
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