Round 1: Boxee's supports Hulu in Boxee and goes from "nice" to "useful/interesting"
Round 2: Hulu asks Boxee to drop Hulu support. Boxee complies.
Round 3: Sort of. Its not supported out of the box(ee :)), but Boxee lets users manually add Hulu support.
Now it gets interesting...
It's not entirely clear to me - and Boxee's end run should bring it to a head; If I connect a browser to my TV, why shouldn't I be able to play content that works on my PC? As a practical matter, there's no good way to differentiate (in the medium term - short term hacks might work)
I kind of get the point for the content guys - they want to decide how and where their content gets consumed. Here's the thing - they may not get that choice: free is free.
(Incidentally this is less of an issue for folks like us than you may think: either way its over our connectivity, and content aqcuisition is a big part of our costs - think it through. For example, note that Netflix likes streaming - because they charge you a subscription.)
It seems like the issue is that, ultimately, the Internet will erase a huge amount of value (valuation? perhaps not quite the same thing) from the world. I'm not arguing about whether that's a good thing or a bad thing - arguably, this was artificial value. Just saying its so... question is how you adjust.
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