The deal will unite three of the four major networks in one virtual screening room. Disney owns ABC; NBC Universal's parent is NBC; and News Corp. owns Fox.
According to news reports yesterday, when and if the arrangement closes, the equity breakdown for the partnership will be a 27 percent stake for each party -- Disney, News Corp., and NBC Universal -- with the remaining 19 percent to be divided among Providence Equity Partners and Hulu employees and management. Disney will hold three seats on Hulu's 12-member board of directors.
Prior to Disney getting onboard the Hulu express, both existing partners NBC Universal and News Corp.'s contracts were expected to expire this year. The two have now extended their contracts an additional two years to match Disney's deal. According to The Wall Street Journal, between capital and advertising investments, the three companies contributed around $50 million each.
More partners were approached: Hulu's chief executive, Jason Kilar, told Reuters that there was ongoing dialogue with CBS: "We'd love them to be part of Hulu... it's ultimately their decision."
Interestingly, the single biggest individual Disney shareholder, with a seat on Disney's board, is Steve Jobs of Apple Inc. (Nasdaq: AAPL), thanks in large part to Disney's acquisition of Pixar. This could be an Interesting dynamic here for an iPhone app.
Despite the impressive news, breaking down the actual content of what Hulu can provide after the deal is not so clearly defined. It seems Hulu is not entitled to exclusive rights to all shows or all episodes of shows owned by the partners.
There may be some very interesting and heated board meetings in the near future, as these three very powerful players jockey for content distribution on Hulu. Outspoken NBC Universal chief executive Jeff Zucker may have fired the first shot: "We would like to continue to have as much premium content as possible," the exec told Reuters. He also added: "Then expand Hulu internationally -- that should be the goal in 2010."
Now that Hulu appears to be in the catbird seat, where does this leave YouTube Inc. , WB.Com, and Boxee ? Perhaps at a clear disadvantage. Hulu now has access to Disney's portfolio, from Hannah Montana to the High School Musical franchise and a treasure-trove of Disney archives.
Meanwhile, YouTube's difficulties have been recently well documented on this site and elsewhere. To add to YouTube's bruised ego, they just inked a deal with Disney to show just short-form videos from ABC and ESPN.
Hulu seems interested in large media companies with hit network and cable television series, rather than YouTube's format of short videos and original and amateur music content. However, YouTube also finalized arrangements in early April with Sony and Lionsgate to provide major movie features in their entirety.
Further, last month Hulu streamed 380 million videos, compared to YouTube's 5.9 billion in the U.S. alone.
Nonetheless, despite that glaring difference, there is clearly a new kid on the block.
The battle lines have been drawn: Let's sit back and (hopefully) enjoy a free content explosion of new options on the Web.
— Chris Poley has been a professional trader for more than 20 years.
Well Nicole, as it stands, they don't want to pay the performers(SAG) for internet tv/web..so yeah, the rise of Hulu definitely had plans of change in the pipeline mapped out prior to its surface. - Actors Voting No on the 2009 TV/Theatrical Contract. I now know why I had a funny feeling about Hulu from start! Not that it's not enjoyable..JUST HAD SHADY PLANS!!!!!
Hulu - is purely entertainment whereas youtube is precisely that.
if you want to find on how to develop in drupal or dotnetnuke, videos are on youtube. How to make geoduck sushi, youtube, the latest and the greatest music video youtube. Techweb's video collection, YOUTUBE.
Clear, ad filled, yet better than the network sites ad filled content..HULU. For the networks by the networks.
No doubt I'm overly biased about this for reasons I don't know my self yet.
jwallace, I think, as my blog suggests, these two companies are going after different content mdoels and maybe very different audiences.
On the one hand YouTube, shows more clips, more original content, more amatuer content, and certaintly more non mainstream music. Promoting a more diverse and may I dare say, younger audience.
While, Hulu, seems more mainstream content and content providers, using very commercial advertising.
I think there is, personally, plenty of room for both YouTube and Hulu. As of now, they are the two to watch.
When the widget TV's saturate the market like lcd's and plasma has over the years, YOUTUBE will once again define the market it CREATED!!
Umm, can you post to facebook(socialbookmark) from Hulu the way you can from youtube? My point made, all Hulu is and perhaps will be is a replay /ondemand service on the web..or a channel that pulls in content from the networks.
Youtube will remain the PEOPLE'S CHANNEL!! go ahead and anger that sleeping(not really sleeping) GIANT and let youtube launch its own network. oh I cannot wait.
and of course after I said all this I'm watching a "Simpsons" episode I embeded from hulu elsewhere....
The one outlier Mr. Rouques is the pay part (Net Flix). Hulu is free still, for now. I watched a movie free Fri. unedited but they were sure to sneak a few commercials in there.
I agree, but that is regarding a different battle - the one between Hulu and Comcast. Although NetFlix has the advantage here, I have it set up with my Xbox and I can buy movies from their website, and stream it to my TV, in full HD glory. Next move for Hulu: Nintendo Wii? or maybe with all three game consoles.
But at least for now, getting the content is key.
I read somewhere that Comcast is looking to get a deal with Hulu that gives their users access to specific premium content. Comcast has their FanCast product but apparently it isn't going anywhere.
Paul, Right off the top of my head, Hulu's large expanding library of network and now cable tv content, (see terry's thread) may start to provide adaquate programming to affect cable's ability to hold on to all your their customers, cancelling cable is a viable option.
I'm not sure, of your 2nd question? I think the L.A based location serves as the perfect location, between Hollywood and Silicon Valley. Both technology and content make for a very good marriage.
I know you are woried about how this deal will impact Youtube and other video sharing sites, but can explain to us how this deal wil revaberate in cable land?
Also does Hulu's success a slap in the cheek on silicon valley rank and file that big media could also build as thriving video streaming site like Hulu.
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In much the same way the banks pushed back on Washington over restrictions tied to stimulus money, telecom and cable companies arent taking grants for rural expansion.
Lets face it: If ever there was a perfect marriage, its the one between Twitter Inc. and the professional athlete, which is storming Internet and mobile phone screens at a breakneck pace.
While Google introduces its new Chrome OS (which I'm hearing will be widely available in one year? Did I mishear that?), IBM announced 10 new products today to help companies using IBM System z mainframe technology.
Smarter Collaboration: How to Thrive in a Challenging Business Environment Market conditions are changing faster than ever, and organizations need to improve their agility and adaptability in order to provide better service and improve processes. The ability to work with customers, business partners, and employees as effectively as possible - while at the same time holding down costs - is a key to success. READ THIS eBOOK
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Industry initiatives and government stimulus funds are giving enterprise software vendors a great opportunity to help build out and manage smart grid technologies.
The problem with telepresence is that it's not universally accepted, because video calling isn't. While we can all do video calling, we also apparently worry too much about how we look. If we want HD telepresence in our future, we have to dress down, mess up our hair, and dive into our online life.
The US loses about $20 billion a year on pirated software, movies, and music. But public policy can help stem the tide of digital theft. For example, France has recently passed a 'three strikes and youre out' law, whereby if after two warning letters an individual continues to download pirated software then his Internet access will be cut off. US policy makers should consider adopting similar policies.
Financial management planning does not need to include Voodoo economics, but it does help to tap into the knowledge base of your team through some sort of real-time system. We explore your options.
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The successor to the BlackBerry Bold 9000 the Bold 9700 will be available soon in the US. Is it worth upgrading? Reiter's got one, and offers advice.
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