they are planning to release a Payment Platform that would allow their
users to purchase video content from the content owners. Presumably,
they would allow their users to buy and rent video content from TV and
Boxee has already gotten some content partners lined up who will provide
paid content to Boxee users upon launch. While they didn't say which
providers were onboard, just hinting that they were previously not
available to Boxee users. Under the terms of the new Payment Platform,
the content owners will be able to charge whatever they want of their
content, which as we've seen with the Amazon-Book publishers dust up,
should keep them happy. Boxee's new payment system will also have
support for letting them offer pay-per-view and subscriptions to the users.
According to the blog entry, this is the beginning of Boxee's business
model where they'll attempt to take in revenues. They will charge a
small percentage of the purchase price of the video, but it will be less
than the 30% that most current Video On Demand services take.
Boxee believes that their model is the way of the future. Their entry
explains, The iTunes store has already shown us that people are willing
to pay for content when it s affordable and easy to access. Our goal is
to equip the content providers that we ve spoken with over the past
year, both big and small, with a way to monetize their content above and
beyond the advertising-only model.