Major changes on the way for Hulu according to internal memo

Major changes on the way for Hulu according to internal memo
Major changes appear to be coming to Hulu, which may lead to sweeping changes for electronic and mobile distribution of TV content. The information comes from an internal memo that was leaked to Variety. It’s important to note that the memo was phrased in terms of “potential changes”, so not all of it may occur (or at the least not all at once) but it demonstrates where two of the most important content providers (Fox and Disney) want to take the company.

The changes are expected to shake out due to a change in management coming later this year. Private equity firm Providence is expected to sell its 10% share this fall, which will allow owners like Fox and Disney to consolidate ownership and exert more control over their content. Among the change they are looking for is an end to the one month exclusivity period that Hulu has on new episodes, as well as the ability to keep things exclusive to the studios’ own websites. Finally, the content suppliers want to end Hulu’s right to negotiate streaming deals with other companies (such as Yahoo) and regain their own ability to negotiated deals for their own content. Fox also wants to double the number of adds shown to Hulu customers when watching Fox content.

The changes could end up making Hulu and Hulu+ a lot less desirable to some users, but the ability of Disney, Fox, and others to negotiate their own streaming deals outside of Hulu might also lead to greater availability of their content – Disney might be happy to strike up a deal with YouTube, for example. As mobile viewership continues to grow, that might actually lead to a faster roll out of mobile TV content. On the other hand, these changes may also impact international users; Hulu has been aggressively trying to roll out the service to more countries, but the memo shows that Fox and Disney are not very interested in the idea. As a result international users may have to hope that Google, Amazon, Apple, or someone else altogether steps up to let them watch that content on mobile devices in Europe or Asia.

source: Variety via The Verge

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10 Comments

1. shadowcell

Posts: 300; Member since: Mar 28, 2012

Something really bugs me about the idea that I could watch any Fox programming (except for FX) for free using a digital antenna yet I will be paying $8 more to stream it the next day with the same number of advertisements. And they wonder why we despise cable companies so much...

2. 14545

Posts: 1835; Member since: Nov 22, 2011

No kidding. This is just disgusting. If fox bullies it's way in to making this come to fruition, then they can count my 8 a month as gone. I pay for less ad's not more. This has to be the most asinine thing I have ever heard. What's left of Fox's content isn't worth sitting though commercials ON TOP OF PAYING THEM. Sorry, fox, but it's not. I'll stick to my HTPC and it's 3tb HDD, then I can skip all these stupid commercials and not have to pay fox a dime. Hulu just made it easier, but when they make it less convenient than it already is, I'll move on. I'm positive others will move on also if this happens.

3. jmoita2

Posts: 930; Member since: Dec 23, 2011

These changes will spell the end of Hulu. As it is I find it extremely irritating to have to watch the mandatory commercials, never mind twice that number. Now, if they remove the Fox content, it will be more hassle than it's worth to keep Hulu. The big studios obviously just want to buy Hulu to shut it down.

4. OSFantasma

Posts: 119; Member since: Sep 27, 2011

so glad i still have my Netflix subscription. i got rid of my Hulu precisely because i hated paying just to watch ads i got a CR and wow it so much better for what i watch...

5. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

As if the mandatory commercials weren't bad enough, now there are more? I've been a paid hulu subscriber for about a year now, mayby its time to cancel....

6. Jphones

Posts: 258; Member since: Feb 10, 2012

hulu messed everything up when they made hulu+ now they just gotta deal with the big companies killing their user base

7. forgingsteel

Posts: 15; Member since: Apr 11, 2012

Didn't Fox buy MySpace too? That turned out well.

8. glenwf

Posts: 11; Member since: Jun 14, 2012

If this actually happens i'll just cancel my Hulu+ and Torrent any TV shows i miss...Then they get nothing from me whatsoever. great plan Fox!

9. tward291

Posts: 559; Member since: Feb 14, 2012

still have blockbuster

10. Natecaddy

Posts: 1; Member since: Sep 01, 2012

I sure Hope Providence does not its 10% of Hulu shares to Disney, but If they sell it to Fox, I don’t think Fox will ruin Hulu’s good reputation for being one of the best sites to stream from. I stream my movies from Blockbuster, and I watch my TV shows through Dish online that's totally free! My Dish coworker told me that Dish has the only online video portal that offers customers over 150,000 movies, TV shows, clips and trailers put into one easy interface; with that much content there's no way I cant find a movie or TV show to watch.

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