Boxee to Take Apple’s Lead and Take a 20% Cut of Transactions Through the Platform


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paidContent.org caught up with Boxee’s VP of marketing and learned that the company plans to take a 20% cut of “whatever transaction[s] we process.” That’s down 10% from the original payment system announcement back in JanuaryMay of 2010 that was said to target media to own, by pay-per-view, or subscription. However, the news of this type of model may not bode well for users, independent producers, and content service providers — even if they are currently working out a deal with CBS. Don’t get me wrong. I think it’s great that Boxee will help facilitate payments through their system. However, such high transaction fees — be it 30% or 20% — is just too much. Boxee will face the same issues Apple is currently facing with its iOS in-app subscription model, if it takes the same hard line approach. We all know Boxee has been negotiating with Hulu to bring Hulu Plus to the platform. Perhaps Boxee’s 20% cut of a users $7.99/mo Hulu Plus subscription is what’s stalling the move (though we don’t know if Hulu would be getting a pass like Apple gave to Netflix)? No doubt the same subscription-based movie and music services that are turned off by Apple’s model are going to balk at the idea of having to pay-to-play on such a niche product. Guess we’ll learn how things play out for the company in the coming months.




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Filed in: Content Providers, Industry Buzz, Software, Streaming Media Devices