Iomega TV with Boxee wont be sold in the U.S.

Remember the Iomega set-top box with Boxees software that was announced at CES earlier this year? The device recently started to sell in Europe, but Iomega just told us that you wont be seeing it stateside any time soon or ever, for that matter. Currently, there are no plans to launch Iomega TV with Boxee in North America, Iomega Sr. Director, Worldwide Communications & Public Relations Chris Romoser told me via email.

Instead, Iomega wants to focus squarely on Europe first, where it began selling the device in recent weeks. The UK, Germany and Sweden are among the first countries where the product will be available, with other European countries to follow, Romoser said. Boxee CEO Avner Rosen acknowledged the news when I contacted him Tuesday afternoon, adding that around 35 percent of Boxees users are in Europe. We have translated Boxee to 17 languages, so it comes in many flavors, he told me.

Iomega and Boxee announced the device earlier this year at CES, with the differentiator from D-Links Boxee Box being an internal hard drive and network-attached-storage functionality. Check out a recent promotional video for the device below:

This isnt the first time Boxee had to scale back on its hardware expansion plans. A partnership with Viewsonic, which was also announced at CES, fell through completely when the company decided against building smart TV products for an unproven market.

However, Boxee is still ad! ding fun ctionality to its original Boxee Box, which is manufactured by D-Link. GigaOM recently broke the story that Boxee is adding live TV functionality to the device through a TV tuner dongle, and Boxee has since confirmed that it will ship the dongle starting in January for $49.

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