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I have been reading about Boxee on Fred Wilson‘s blog but thought it would be focusing solely on the US market. Yesterday I read that it worked with the iPlayer, so I took it for a spin last night.

Boxee is essentially a digital media entertainment hub. It allows you to aggregate all of your digital media from your computer and channels you like on the web in one place. You can then play back through your telly or watch on your computer.

I am a big fan of the iPlayer – I don’t love TV enough to record stuff, but it is great to be able to find something you want to watch when that telly moment comes. Boxee takes this one step further, offering a service which will eventually allow you to watch anything on demand from one place. This feels like the first time that the bridge between the internet and the TV has been built effectively. It will be interesting to see if Boxee ends up being the EPG for the digitally converged living room.

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I have just been catching up on Fred Wilson‘s blog and was interested to see his post on Joe The Plumber’s Landing Page. The post basically says that Google should improve its Google Local service to provider better landing pages for small businesses (skinning, own URL, call to action etc). Several Union Square Ventures‘ portfolio companies are in the business of helping advertisers target local businesses – so I can see why he would like Google to help solve their landing page problem as this would bring more of them in to the market for being sold online advertising.

Google Local is already a very powerful resource – I can see that if Google does improve its service, this could put traditional directories such as Yellow Pages and Thompson Local under even more pressure. These companies have been slow to innovate, it may now be too late to grab their slice of the online pie.

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There has been a lot of debate in the blogosphere over the past week about the crunch and its potential effect on startups. A Sequoia presentation has been circulating which is a must read for anyone involved in a startup – you can read it here. The presentation paints a pretty bleak and, in my opinion, realistic picture of the next couple of years and tells startups to focus on preserving capital and getting to profitability.

We have been debating our business model and the merits of having both a free and premium product (dubbed by Fred Wilson as a freemium strategy). The thinking behind a freemium strategy is that the best way for a startup to build a decent size paying customer base is to launch a free version and get viral growth and then convert your top customers to pay for the service by offering premium features.

The counter argument to the freemium strategy that has emerged with the credit crunch and looming recesssion is that start ups need to focus on getting to profitability, so they should not be giving away free product, but focusing on getting paid customers.

I have been personally wrestling with this debate and even left a comment on Fred Wilson’s blog questioning whether Freemium was a suitable strategy for these lean times, particularly the points made on slide 46 of the Sequoia presentation (importance of established revenue model, understanding of market uptake, customers’ ability to pay, profitablity, cash) . He came back to me saying he thought that Freemium is a great way, maybe the best way, to achieve all the suggestions on slide 46.

I guess what he means by this is that you will not get better marketing for your product than initially giving it away (or a version of it). You will get lots and lots of customers using your product that would not have otherwise done so. If your product is any good, they will tell their friends, some of whom will also try your product. The key is then implementing the Freemium strategy so that you can optimise the number of paying customers. If you have a great product and lots of people take it up, even a small percentage of that base would make up a large paying customer base which would have cost a lot of marketing money to acquire.

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