Why SAMSUNG LTD(F) (ADR) (SSNLF) Killed Boxee?

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SAMSUNG LTD(F) (ADR) (OTCMKTS:SSNLF) has silently killed Boxee, a smart TV startup, which the company acquired two years ago. Its ambitious intention to change the TV remote is also buried for now. The South Korean firm has given a quite burial last month to a project known as ‘Perfect Experience’. The company has laid off at least dozens of the ‘Perfect Experience’ workforce, which grew to 100 from around 40. Interestingly, many of them joined it following the acquisition.

Key Personnel Left

What has lent much credence to the belief is that Boxee’s former CEO, Avner Ronen, has left SAMSUNG LTD(F) (ADR) (OTCMKTS:SSNLF). He was named VP of product after Boxee’s acquisition. The Korean firm refused to confirm or deny saying that they don’t comment on speculation or rumors about personnel matters. The spokesperson merely disclosed that the company is continuously looking into areas for investments to improve its experience for its consumers.

The main focus of PX was an exclusive media tablet aimed at replacing the conventional TV remote. The tablet has been designed to provide access to the users with a unified guide on live TV listings, as well as, streaming content with a customized user interface.

Streaming Stick

Boxee appeared similar to that of Google Inc (NASDAQ:GOOGL)’s Chromecast streaming stick. The device would enable users unveil videos from their smart devices. It appears that SAMSUNG LTD(F) (ADR) (OTCMKTS:SSNLF)’s aim was to create a communal device, which would not be restricted by any one member of a family.

The objective was clear, i.e. not only to replace the conventional remote control but also to provide a reinvented device to allow customers to watch smart TVs.

Pressure

The company appeared to have faced pressures and politics from within. It was considered a bold initiative but was also termed as ‘highly controversial’ by insiders. Reports suggest that executives were wary of an America-centric product and internal politics contributed to the shutting down of the project altogether.

Also, SAMSUNG LTD(F) (ADR) (OTCMKTS:SSNLF)’s discussion with the content partners faced rough weathers. While the company was keen to integrate content into its guide, the service providers were not showing interest and wanted to ensure their app experience. The closure might have also been a part of the larger initiative to reassess its operations in the United States and focus on revenue-generating businesses.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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