StartupSD

What’s a chumby? The quick answer is this: chumby is many things, and the list never stops growing.

We last wrote about chumby in April 2008, when they raised $12.5 million in a Series B round in order to “accelerate growth of the company, and expand and broaden the Chumby Network to other screen-based Internet connected devices such as LCD TVs and digital photo frames.”

Well, it looks like they are accomplishing their goal.

Chumby Industries, Inc. recently announced a new partnership with Broadcom to integrate the chumby network into devices, such as internet-connected TVs, set-top boxes, and Blu-ray players, featuring Broadcom’s chipsets.

Chumbys of all shapes and sizes

So, that means chumby is:

• chumby, a huggable, Wi-Fi-connected clock/radio/widget-playing device
• the chumby network, freely providing over 1,000 widgets in more than 30 categories, such as weather, social networks, photos, sports, news, entertainment, videos and more
• chumby-enabled, internet-connected digital photo frames
• chumby-enabled portable media players and portable TVs
• now, chumby-enabled, internet-connected TVs, set-top boxes, and Blu-ray players
• … and surely more to come

Video: Sneak peak of upcoming chumby integrations

What do all these different manifestations have in common? Answer: an open source, Linux-based platform and a cloud-based content network. The open source platform runs on a local device, chumby industries hosts the widgets, and the ‘net connects it all.

Not only does the chumby network provide live information to devices, but a user’s widgets are synchronized across various devices, providing a coherent experience from one screen to another. Many chumby widgets are social-enabled, allowing for sharing of content, photos, video clips, games or messages with friends who own a chumby-powered device.

Chumby Change

If the chumby network is free for users, then where is chumby making money? Selling chumby devices?

No, the iconic, padded chumby, currently selling for $200, is reportedly priced at a break-even point. (If you’d like to learn more about the manufacture of chumbys, and back-stories on Chinese society, read eye-opening accounts about setting up production in China from Andrew “bunnie” Huang, chumby’s VP of Hardware Engineering here.)

Instead, chumby aims to profit from the chumby content network, including:

• Sponsored advertisements, both interstitial (yes, they’re skippable) and embedded (like “this widget brought to you by Coca-Cola”)
• Service fees for subscription content
• Referral fees (pointing users to media, stores, products, etc)
• Payment fees (taking a cut from purchases)

Video: Preview of chumby on Broadcom-powered TV

What’s Next?

There’s no doubt that content previously confined to the internet is moving (finally) to other screens, particular TVs, but Chumby is facing serious competition for those eyeballs. It’s like there’s a piñata full of eyeballs, and chumby + Broadcom, Yahoo! + Intel, Sigma, Sony, and, without a doubt, Google and Microsoft, are all swinging sticks wildly in an attempt to crack that donkey open.

The battle has begun. But can chumby carry enough a big enough stick to the fight? They’ve made important partnerships and progress to date, but as they shift their focus away from their iconic chumby device (aka “iPod touch knocks up a hacky sack and has a baby”), can their brand compete with the mighty Yahoo!?

Chumby is the nimble lightweight in this fight. It’s small, nimble, and quick, and it can use its smaller size to take advantage of deals that companies like Yahoo! can’t afford because of it’s required rate of return.

It’s still early in this sage of convergence, probably just midway through Round 1, so sit back and enjoy the show.