The Social

Boxee, a New York-based start-up that makes "media center" software, announced Wednesday that it has raised $6 million in a Series B financing round led by General Catalyst Partners. Existing investors Union Square Ventures and Spark Capital also participated in the round.

Boxee raised its series A round, to the tune of $4 million, last November. With the new financing the company hopes to ink more deals with media companies and set-top box manufacturers, as well as hire more employees to keep building out its technology (which includes a developer platform). Currently in an alpha test phase, Boxee hopes to expand to a beta test in October.

More deals will also help Boxee gain some industry cred. It has still been unable to convince Hulu, now the big name in premium online video, to reverse a ban on Boxee's access to its content--which includes a huge library from NBC Universal, News Corp., and Disney's ABC Entertainment.

"I think that the best thing that we could do in order to become partners with Hulu is, on one end, work with other media companies so they see that Boxee is overall a friendly company to content owners," CEO Avner Ronen told CNET News. "And the second is that we need to grow our footprint, we need to grow our user base, we need to get on more digital devices, and I think if we do those things it will open the opportunity up for us to partner with Hulu."

"Our belief is that, eventually, content owners need to follow the users," Ronen said.

In a move that makes him seem a bit like Dr. Evil wanting to be paid one hundred billion dollars for Austin Powers' ransom, News Corp. CEO Rupert Murdoch has said that he will charge for all the online content associated with the newspapers and television stations he owns.

Rupert Murdoch, media baron

(Credit: Dan Farber/CBS Interactive)

It's a goal that some in the digital-media space will bill as ludicrous--and some as inevitable.

The Financial Times reported the news Thursday, adding that Murdoch had spotted "some good signs of life" in the battered advertising sector.

He's already got most of The Wall Street Journal, which News Corp. acquired two years ago, behind a pay wall. But he also owns the rest of Dow Jones & Company, the Fox television and film empire, the New York Post, and the U.K.'s The Times. News Corp. is also a partner in Hulu, the joint video venture that offers a big chunk of Fox television content (as well as NBC and ABC) for free on the Web.

Robert Iger, the CEO of new Hulu partner Disney, said at a conference last month that he does not believe Web content needs to be offered for free, and that consumers will be willing to pay for it.

"We intend to charge for all our news Web sites," Murdoch said, according to the Financial Times. "If we're successful, we'll be followed by all media."

In late 2007, well before the market collapse last fall, Murdoch had said pretty much the exact opposite, claiming that a free and ad-supported model would be more beneficial than a subscription model for The Wall Street Journal.

Presumably the new paid-content strategy wouldn't apply to News Corp.'s digital-only assets, like social network MySpace.

This is sort of interesting. MTV Networks, which certainly has a lot of video content out there on the Web, on Wednesday released the results of an internal study to determine what kinds of advertisements are most effective and online-friendly matches for short-form online videos.

The conclusion? "Project Inform," the MTV survey, found that a five-second-long "pre-roll" ad in advance of the clip, combined with ten seconds of a semi-transparent ad unit that takes up the lower third of the video (and starts about ten seconds in), makes up "both the most effective and the most audience-friendly ad product for short-form online video," according to a release.

MTVN calls this the "lower one-third product suite." It was tested against two other ad packages, the "sideloader," which combines the five-second pre-roll with an ad that rolls out of the side of the video window; and a traditional 30-second pre-roll before the ad.

So, obviously, that's a limited number of options and certainly doesn't reflect the full range of possibilities for online ads. But it was thorough: Project Inform ran consumer survey tests across about 50 million video streams on the Web properties for media brands like MTV, Comedy Central, and Nickelodeon.

"Short-form online video consumption is exploding, but there's still a lot of confusion among marketers over which ad formats deliver for brands without compromising the user experience," Nada Stirratt, executive vice president of digital advertising at the Viacom-owned MTV Networks, said in the release. "By exploring the viability of new ad products around short-form online video, Project Inform provides the type of insights crucial to creating the innovative, custom solutions that this marketplace needs."

The catch is whether even the highest-performing varieties of online video ads still really rake in the dollars. Online video has been notoriously difficult for companies to monetize, but that's in part because the first variety of video to gain traction on the Web was amateur, user-created content (do top-notch advertisers really want their message next to a video of a squirrel on water skis?) and also because traditional, TV-style ads don't have the same impact alongside shorter Web clips.

There have been some promising signs, though. Video portal Hulu has investigated a couple of experimental video ad formats since launching last year, and has had good news to report on the advertising front--like that its inventory sold out a month after its public debut.

Viacom isn't a member of the Hulu joint venture, which now consists of NBC Universal, Disney's ABC Entertainment, and News Corp. But a limited number of episodes from Comedy Central talk shows "The Daily Show with Jon Stewart" and "The Colbert Report" started playing on Hulu last year.

It's here, sort of. Several months after the big announcement that content from Disney's ABC Entertainment division would be coming to Hulu, the entertainment conglomerate's shows have started arriving.

The primetime drama "Grey's Anatomy" debuted on the video hub Monday, and more shows will roll out over the next two weeks.

These include, according to Hulu, consistent hits like "Desperate Housewives" and "Scrubs," along with more recent additions to the network such as "I Survived A Japanese Game Show."

Disney joined Hulu in April, giving it a joint stake in the company alongside NBC Universal, News Corp., and investor Providence Equity Partners. Shows from ABC as well as ABC-owned cable channels like SoapNet and ABC Family are on the way, along with movies from Disney (though no titles have been made available yet).

Would-be Hulu rival Joost closed its consumer video service last month after its peer-to-peer technology failed to make up for its tepid content offering.

My big question: When will we see episodes of my favorite ABC show, "Lost," on Hulu? I've e-mailed a company representative to find out.

Want to feel old? This album came out 15 years ago.

Hulu will live-stream a concert for the first time: Dave Matthews Band at New York's Beacon Theater on June 1.

The online video hub, which announced the event Thursday, will be the only place streaming the concert live, at least legally.

Pop culture brush-up: the Dave Matthews Band was really, really, really huge in the '90s, known for lengthy live jams, for a Phish-like cult following that skewed more preppy than hippie, and for "Ants Marching," which was inescapable if you ever got anywhere near a frat house between 1994 and 1997. People generally loved them or hated them back then, due in no small part to the fact that they were the soundtrack of choice for the jocks rather than the indie kids or nerds.

It's a good fit for Hulu's first live concert broadcast--the site's first live streaming event was a presidential debate last October. The Dave Matthews Band's original Gen-X and Gen-Y fan base is exactly the demographic of 20- and 30-somethings--though not necessarily tech-savvy ones--who would tune into a concert stream online. And conveniently, the date of the show is the day before the band's long-anticipated new album, "Big Whiskey and the GrooGrux King," hits stores online and offline.

Frontman Dave Matthews was, on an unrelated note, one of the first mainstream musicians to use Twitter actively.

Hulu, meanwhile, is riding the wave of mainstream success in the wake of an edgy TV ad campaign and the big news that Disney would be joining News Corp. and NBC Universal as a partner in the joint venture.

Disney's ABC Enterprises announced Thursday that it has entered into online-video joint venture Hulu, currently a partnership between NBC Universal, News Corp., and investor Providence Equity Partners.

This means that TV shows from Disney-owned channels like ABC, SoapNet, and ABC Family will be coming to Hulu. Among them are "Lost," "Grey's Anatomy," "Ugly Betty," and "Scrubs." There will also be Disney movies available on the ad-supported streaming video site, but a press release did not name any of them. Content will be available "soon," the press release explained.

Reports started to surface about a month ago that Disney was in talks to join Hulu.

Robert Iger, president and CEO of the Walt Disney Company, will take a seat on Hulu's board of directors, along with Anne Sweeney, co-chair of Disney Media Networks and president of the Disney/ABC Television Group, and Kevin Mayer, executive vice president of corporate strategy, business development, and technology at Disney.

ABC already streams a significant amount of television content on ABC.com, and Disney-owned television and video content was some of the first to make an appearance in the iTunes Store's video download section.

Apple CEO Steve Jobs is Disney's single biggest shareholder, having sold animation studio Pixar to the company in 2006.

This post was expanded at 8:15 a.m. PT.

More than 800 digital-media enthusiasts in New York RSVP'd for a Tuesday night "meet-up" held by Boxee, the TV browser software company that's ambitiously (and controversially) aimed to make it possible to have a full Web content experience in your living room.

Right now, Boxee sources content from outlets such as Comedy Central, Netflix, CBS (which publishes CNET News), and Web video content hubs such as Blip.tv and Next New Networks.

In conjunction with the get-together, Boxee (still available only for Mac and Linux) made a few notable announcements: First of all, it's overhauled its application program interface (API)--which was only three weeks old to begin with--so that developers can build more complex applications for the platform.

There are a few new ones at launch: streaming-radio provider Pandora now has an application to bring its content to Boxee, as well as terrestrial-radio hub RadioTime. A third-party company called BoxeeHQ has also created an app to stream content from PBS.

Boxee's content-browsing software is now built on the XUL framework, which makes it a "remote cousin of Firefox," CEO Avner Ronen said. It will detect a video in a regular Web page and then attempt to pull it into a full-screen view. Guess what this means: Content from Hulu will be back, at least for now.

For those who stepped in late: Hulu, the joint venture between NBC Universal and News Corp., had been available as a channel on Boxee until access was blocked at the request of content partners. Boxee brought it back by pulling in Hulu's RSS feed, but then Hulu blocked that too.

Still in alpha test mode, Boxee has gained a loyal following among geeks who love its hackability, futurists who see it as the best hope for the why-won't-it-happen-already convergence between TV and the Web, and people fed up with subscription cable services. But on the flip side, it's still unclear as to how the start-up will dig through the complicated stratigraphy of media industry regulations, and it's also unclear as to how it will make money.

Ronen hinted that an "app store" format will be part of its strategy, letting developers charge for their applications and taking a cut of sales, in addition to advertising. Also down the pipeline: an improved search feature that will let members search all Boxee content at once rather than only within individual content providers one at a time.

Boxee also released its first iPhone app this month. It's not a video app, though--it's an app to remotely control the Boxee browser over a Wi-Fi connection. Ronen says the company's received "great feedback" on it.

AUSTIN, Texas--With panels and discussions every year about social engineering, hacking, remixing, and culture jamming, South by Southwest Interactive is the must-attend conference for geeks who want to shake things up.

Maybe that's why the many panels at the conference about the future of media--from print to broadcast to music to film--were tinged with the message that fast, often radical change is necessary. With panel topics like "How Copyright Law Failed The Digital Age," "New Think for Old Publishers," and "Old Media Finds New Voice Through Twitter," this year's SXSWi promised to offer a blunt take on some longstanding stalwarts of the media industry that now lie in states ranging from evolutionary flux to full-out crisis mode. The Austin Convention Center was buzzing with talk of the future, but there was no denying the upheaval going on outside.

The short version of the long version we all know: Traditional moneymaking strategies across the media landscape are losing steam. While solutions from interactive ads to subscriptions to micropayments to social-network "app-vertising" to all sorts of digital sales models have been pitched and put into effect in this new world of iPods and Kindles and YouTube and a dozen different streaming media services, the digital revenues aren't keeping pace with what's being lost. A nasty recession just throws a big, costly fork into the equation.

"I should set up, like, a little picture of me (on my Web site) with a picture of a pirate eye patch on, saying 'Arrrr, give me five dollars!'" said documentarian Morgan Spurlock in a panel called "The Future of the DVD and Digital Distribution," when the topic shifted to the long-shot possibility of asking for donations to combat piracy.

He was joking, obviously. But SXSWi panelists as a whole seemed to indicate that struggling media companies shouldn't just embrace the cutting edge, they should more or less dive off it headlong.

"There is no low-risk solution to innovation. When times are tough, brands and agencies and everyone has a tendency to say, 'Well I don't want to experiment,'" said Patrick Moorhead, director of emerging media at the Microsoft-owned ad firm Razorfish, in a panel discussion on Saturday morning about innovation during a recession. "Our belief is that if you stick with what you've got, that's a bigger risk than taking a risk on emerging media and testing something new that could potentially teach you something."

Moorhead showed off "NewsBreaker Live," an ad campaign created for MSNBC in which motion sensors in participating movie theaters let the audience play a full-body version of a "Pong"-like game to capture real news headlines. It certainly livened up the panel, even though no one could really see closely enough to read the actual headlines.

"South by Southwest, from what I can tell, it's very much end-filtered," said Eric Feng, chief technology officer at Hulu, the joint video venture between News Corp. and NBC Universal. "I think it really prides itself on a free spirit, and you're going to get honest feedback from real people, real users, real companies, a lot more so than some of the other conferences you might go to."

So you'd think that this is the sort of place where the old media's struggling elite might show up in search of a few answers, however out of left field they might be.

But they're hard to find. Wander the halls of the Austin Convention Center during SXSWi, and you'll run into loads of start-up entrepreneurs, digital marketers, and representatives from both traditional and outside-the-box advertising agencies. Traditional media companies on both the print and broadcast fronts, however, are tougher to track down. It's unclear as to just how much of a presence the likes of a major broadcast player or a national newspaper has at SXSWi--it's easy to get lost in the hordes of developers and designers.

"I assume they're here," said Avner Ronen, CEO of the video software start-up Boxee, which has made waves recently for offering a well-received product and getting into a sort of content feud with Hulu and its video partners. "I haven't run into them."

Kevin Marks, a Google product manager who has been working on its Friend Connect product and marketing it to some traditional media properties, thought differently. He pointed to panels like "Designing the Future of the New York Times," in which designers from the struggling newspaper talked about their attempts to propel it into the digital world. "I was very impressed with the (traditional) news people here who say, 'We have this problem and we're finding ways to work through it. We're going to work with the Web,'" Marks said in an interview.

On the other hand, there are dangers in listening too closely to the digerati. SXSWi attracts a self-selecting crowd of well-educated futurists who live primarily in major cities or academic hubs, a good number of whom are probably quite confident that the digital revolution is in full force just about everywhere. It's a truism best personified by the fact that the concentration of Apple's iPhone, the quintessential gadget of the tech-savvy and hyperconnected, was so high in Austin during SXSWi that carrier AT&T had to boost its infrastructure for the week. Attendees are invariably in the company of very bright people on the bleeding edge of digital media. But this can be a myopic bunch.

Ricky Van Veen, co-founder of entertainment brand CollegeHumor, pointed out in a Saturday panel called "Comedy on Television and the Web" that even though canceling cable subscriptions and even ditching TVs altogether is trendy among young people in cities like New York and San Francisco, a recent study showed that the trend nationwide is very different. A start-up like Boxee or even Hulu doesn't have the "wow" factor in a suburban household that watches "Dancing With The Stars" on TV in the evenings as it does in a city apartment where the broadcast airing of "The Office" conflicts with happy hour. "The average American watches 151 hours of television per month," Van Veen said, citing Nielsen statistics from last month. "That's an all-time high."

In an interview with CNET News on Monday, Hulu's Eric Feng concurred. "For the Super Bowl you had a hundred million people tune into one event. You still can't amass that type of audience in an online environment."

But however edgy some of the thinking may be at SXSWi, and however much its demographic may deviate from the U.S. population as a whole, the revenue crisis is real, and this is one of the places where it takes center stage. According to Avner Ronen, the sense of uncertainty over profits is what's holding back some of the innovation that SXSWi's masses are so eager to set in motion.

"That's what's scary for the media companies dealing with Boxee," he said. "They saw what happened with newspapers. It's unlike the record industry, it's not like they fought it. They endorsed it, they executed very well against it, it's just...the analog dollars to digital pennies thing."

Right now, many of them are at the point where they could use some insight--even the wacky kind with eye patches.

Video hub Hulu now lets its members amass friends lists much like a standard social-networking service, the site said Thursday.

You can now invite friends from your e-mail address books or Facebook and MySpace accounts, and then see a feed of what your friends have been watching, commenting on, or subscribing to.

In the event that you find this creepy or don't want your boss to catch on to the fact that you watch reruns of It's Always Sunny In Philadelphia all day long you can disable these activity-feed features.

The announcement comes in conjunction with the one-year anniversary of Hulu's public debut. To mark the occasion, the NBC Universal-News Corp. joint venture will introduce over the next week a "bevy of new shows, more seasons of user favorites, and classic cartoons and movies."

Also new: a sort of trends page with rankings of the most e-mailed, searched, and embedded videos, as well as editors favorites. Not surprisingly, Saturday Night Live is a huge hit, and the most-searched name on the site is "Palin."

On the less pleasant side of things, Hulu's one-year anniversary comes at a time when the site is dealing very publicly with the invariable old media-new media gulf: pressure from content owners caused the site to ax its support for buzzworthy video software maker Boxee earlier this month.