Wal-Mart to Sell Boxee TVs Challenging Apple and Roku
In a coup for New York-based startup Boxee Inc., Wal-Mart Stores Inc. (WMT) will sell and promote its new Web-connected device that brings live television and online video together, the companies said.
Context & Ripple Effects
Wal-Mart had already been testing its role in internet video through its earlier Vudu-linked Web TV effort. Its decision to promote Boxee gives the startup a mass-retail route for a device positioned around both live television and online video, rather than leaving distribution to specialist electronics channels.
First-order effects
- Boxee gains Wal-Mart shelf space and promotion for its connected-TV device, expanding its ability to compete for households against Apple and Roku.
- Apple and Roku face a new retail-backed rival in the connected-TV category; Roku is also marketing a $99 Streaming Stick limited to select compatible TVs.
Second-order effects
- Wal-Mart’s endorsement makes retail placement and in-store promotion more consequential competitive levers for connected-TV vendors, alongside device features and app access.
- Roku’s existing Vudu app availability puts Wal-Mart’s video-service ecosystem closer to the device competition, increasing the retailer’s influence over which viewing interfaces reach its customers.
Third-order effects
- If large retailers continue pairing video services with selected hardware, connected-TV competition may organize around control of consumer distribution routes as much as around standalone set-top boxes.
- The pattern points to mass retailers acting as platform gatekeepers in Web TV, using merchandising and service ties to shape the devices consumers encounter.
The trend: Connected-TV vendors are competing not only for streaming features but for retailer-controlled routes to mainstream households.