Boxee’s big foray into the world of hardware is set to start shipping November 10, but it sounds like they need a little cash up front. According to Peter Kafka at AllThingsD, Boxee is currently seeking out another $10-15 million of funding from new and previous investors.
Bringing in new investors at this stage or allowing previous investors to increase their stake in the company is a major opportunity for those who want to be in the set-top box game, one which is heating up over the last few months, thanks to the new Apple TV and the launch of Google TV.
However, the Boxee Box isn’t a sure bet, with a $200 price tag and no guaranteed access to many key services. Even internally at NewTeeVee, we’re torn on the device’s potential: While Janko believes in the box’s value for cord-cutters, Ryan thinks it’s only a short-term solution, given the availability of content.
A Boxee representative, via email, said that:
“Regarding Peter’s story, with no revenue stream in place we’re doing what’s worked for us in the past — namely asked people to give money to us. It seems to continue to be working. :)”
Roku’s strategy, by comparison, looks pretty good. The set-top box manufacturer expects to sell a million units and double revenues to $75 million over the course of 2010. And not only does it have confirmed access to the Hulu Plus paid subscription service, but both its software and hardware are now available for licensing.
Boxee, as seen above, makes no secret about its lack of a revenue stream, and as Kafka points, out carries a bit of overhead with more than 30 employees. Whether the company is a good investment or not may not be clear until after the Boxee Box hits shelves.
Related GigaOm Pro Content (subscription required):
- ESPN Leads the Way Over the Top, But Will Others Follow?
- New Business Models For Pay TV Services
- Why Boxee Must Evolve or Die