Stop Me If You’ve Heard This Before: Hulu Owners Say ‘Nah’

/ Jul 12, 2013

hulu pic jul9

It’s 2011 all over again as Hulu’s trio of owners, 21st Century Fox, Disney, and Comcast, have decided to not sell the video service to any of its suitors. Instead, they will put $750 million into the video company to “propel future growth,” according to the announcement.

The final suitors for Hulu came down to DirecTV and the combination of The Chernin Group and AT&T, as well as Time Warner Cable, which was only interested in buying a stake in the company. The initial list was much bigger, but over the past couple of weeks, most of them dropped out due to various reasons.

In a statement, Chase Carey, president and COO of 21st Century Fox (formerly News Corp.), said: “We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure. We had meaningful conversations with a number of potential partners and buyers, each with impressive plans and offers to match, but with 21st Century Fox and Disney fully aligned in our collective vision and goals for the business, we decided to continue to empower the Hulu team, in this fashion, to continue the incredible momentum they’ve built over the last few years.”

I promise, you are not stuck in a time-warp.

What’s interesting though is the second half of Carey’s statement, about Fox and Disney being “fully aligned” with what they want to do with Hulu. Does that mean more investment in Hulu’s subscription offering (which Fox has notably favored), or the free, ad-supported half of the video service (which Disney has supported)? Comcast/NBCUniversal, the third primary owner, has no operational oversight due to FCC regulations.

What about reports of a mass executive exodus at Hulu due to concerns over the company’s future?

A recapitalization in the amount of $750 million would signal that Hulu owners have a renewed faith in the service.

As for Hulu’s original programming ambitions, if the current trio of owners remain at the helm, it’s likely that original content will continue to be a side-project for the video company. Hulu’s licensing deals for TV programming are its bread and butter. Hulu’s owners want to control who can access their content as much as it’s humanly (or legally) possible. The idea was that a new Hulu owner, which wouldn’t have access to the licensing deals Hulu currently enjoys, would be forced to invest more in original programming. In other words, Netflix’s strategy for the past year or so. That’s pretty much an after-thought right now.

Hulu declined to comment beyond what was announced in the release this morning.

Tags: , , , , , , , , ,


Screen Shot 2015-06-29 at 11.40.20 AM

Disney Scrambles Up a New Hip Webseries

Read today's digital video news stories

Quick Breaks: Netflix Releases New ‘BoJack’ Trailer;...

Dailymotion

Vivendi Finalizes Purchase of Majority Stake in Dailymotion for...

Ooyala

Ooyala Adds Process Power With Nativ Acquisition

League of Legends

eSports Gaming & Gambling Platform Unikrn Takes $7 Million...

Digital video industry news today

Tuesday 6.30.15: News to Know

Break Movies

Break Movies signs licensing deal with Paramount

CAA Signs Bart Baker

“King of Parodies” Bart Baker Signs with CAA

Starz Arabia kickstarting SVOD in Middle East

OTT Revenue in the Middle East, Eastern Europe and Africa is on...

Mr Robot

Mr. Robot Scores Big for USA Network with Online Pilot Preview

Read today's digital video news stories

Quick Breaks: Meerkat to Embed Streams for Shark Week; Another...

New Defy Fiat series Bigger Is Better

Chris ‘Big Black’ Boykin Drives a Fiat in New...

Digital video industry news today

Monday 6.29.15: News to Know

Reuters TV iPhone

A Peek Into Reuters Live Video Syndication Play with Mirror Image

Amazon_Catastrophe

From The UK With Love and Snark

Arianna Huffington 3-2-15

HuffPost Revs Up For TV, Mobile, Social and Global Video Play

fox logo

Fox Networks Group Taps Former Sky Deutschland CEO as First-Ever...

Read today's digital video news stories

Quick Breaks: Morgan Spurlock Doc on Amazon; Netflix Sets...

cinedigm

Cinedigm Invests in Shout Factory, Will Reboot Its OTT Video Channel

feeln

Hallmark’s SVOD Service Feeln to Produce Weekly Talk Show...

subway original series on hulu

New Season of Subway’s Scripted Series Debuts on Hulu,...

VideoInk_Cognito_Banner_300x250

Is Verizon Really Well-Positioned for the Streaming TV Business?

Digital video industry news today

Thursday 6.25.15: News to Know

verizon

Verizon Adds Scripps Channels to Its Upcoming...

transparent renewed for season three

‘Transparent’ Gets Third Season, Soloway Gets...

Mobile video on different screens

Viewers Are Watching Longer Content on Smaller Screens (Report)

Van Halen's backstage rider

Web Series Wednesday: See What Van Halen Drinks and Patti Smith Eats

Read today's digital video news stories

Quick Breaks: Grateful Dead Concerts Will Stream on YouTube;...

Sweety High collabs with Radio Disney

Radio Disney and Sweety High Are Making Web Content for Tween Girls

lionsgate

Lionsgate Hires Seth Laderman to Run Its Comic-Con Streaming...

Tyler Ward started his music career on YouTube

How Cover Songs Gave Tyler Ward His German Fans…and a...

HBO_image

HBO Is Sampling New Series ‘Ballers’ and ‘The...

lohanthony

YouTuber Lohanthony to Star in New Indie Film ‘Miss...

Digital video industry news today

Wednesday 6.24.25: News to Know

elvis-nixon-kevin-spacey

Amazon Nabs Its First Big Original Film, the Kevin...