Google is in talks to purchase the online video streaming company Hulu according to the L.A. Times. As mentioned in our old Hulu article it is a streaming movie subscription service offering ad-supported on demand shows, movies, webisodes and other new media. Hulu is already approaching potential buyers would include Google, Microsoft Corp. and Yahoo Inc. Google is hoping to add professionally produced content together with its already established user generated content on YouTube with the purchase of Hulu. Google has hired industry veterans to help the Internet search giant make inroads and strike deals.
Hulu’s rights to the current season’s TV shows have drawn interest from Google and Yahoo because these popular programs have attracted more than 600 advertisers — including such major brands as McDonald’s, Johnson & Johnson and Toyota. The site expects to bring in $500 million in revenue this year from advertising and proceeds from its Hulu Plus subscription service.
Hulu was made more attractive for sale recently with Walt Disney Co. and News Corp renewing their licensing agreements who are two of the larger companies involved in the online video service Hulu.
In an interview with the LA Times Arash Amel, research director for digital media for IHS Screen Digest explains:
“If you had those deals for 10 years, OK, you have time to build a business,” “But look at what they are trying to do to Netflix. They help you until you are successful then they want most of what you make or they try to kill you.”
Source: L.A. Times