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I think it was made pretty clear, that Hulu does embrace boxee, but it was the content providers that pulled the plug. Without content from the providers there would be no Hulu, so they had to cave.

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This warrants repeating: Hulu is doing their very best to drag the content providers into this century. Boxee gets this, which is why they complied with a request from Hulu, without forcing the issue. Hulu asked, Boxee agreed, and now Hulu tries to convince content providers to change their mind.

I think boxee and this VC are obfuscating the important point that Hulu's content providers and its owners are one in the same. Hulu is jointly owned by NBC Universal and News Corp (owner of FOX and 21st Century Fox). So, in the end, neither the stockholders nor the stakeholders support Boxee.

This is no surprise; why should they want to nurture a less lucrative distribution channel on the same medium as their primary source of revenue?

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