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Disney joins Hulu Disney has finally confirmed that full-length programming from ABC will join the line-up of online video service Hulu and that the Mouse is taking a stake in the NBC Universal (NBCU)/News Corp joint venture as part of the deal. The widely anticipated move will see The Walt Disney Company becoming a shareholder in Hulu alongside NBCU, News Corp and Providence Equity Partners, the latter having acquired a 10% stake for US$100m two years ago. Terms of the Disney deal were not disclosed but commentators have suggested that Providence will have a 13% shareholding in Hulu while NBCU and News Corp swap their 45% stakes for an equal 30% each. In return for its 27% stake Disney will bring full-length episodes of current and library shows including Lost, Grey’s Anatomy, Desperate Housewives, Ugly Betty, Scrubs and Who Wants to be a Milionaire? to the Hulu catalogue. "From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today's Hulu announcement is the next important step in that ongoing journey," said Disney president and CEO Robert Iger. "Disney and Hulu share a focus on delivering the highest quality entertainment experience and we look forward to working with Hulu to build value for our consumers, our brands and our shareholders.” "We're honoured to welcome the Disney team in our mission to help people find and enjoy the world's premium content, when, where and how they want it," said Hulu CEO Jason Kilar, adding that the addition of Disney shows would help deliver "a service that users, advertisers and content owners unabashedly love." Reports that Disney was in discussions with Hulu first surfaced last month, with the Mouse negotiating a distribution deal in parallel with YouTube, which in the end had to settle for clips of the full-length episodes Hulu will now benefit from. Iger, plus Disney Media Networks co-chair and Disney/ABC TV Group president Anne Sweeney, and Disney executive VP of corporate strategy Kevin Mayer get seats on the Hulu board. "Hulu, quite simply, now has the best premium content on the web," said outgoing News Corp president and chief operating officer Peter Chernin. "With three major networks and over 150 leading content providers providing content, combined with the best video user interface anywhere on the web, Hulu offers consumers the finest premium online video experience available today." Chernin was instrumental in getting Hulu off the ground but there's been speculation that his decision to step down this summer will mean the venture may well get squeezed by others within News Corp who remain concerned about the impact its having on Fox's existing cable relationships. While Hulu has shown tremendous growth, last month knocking Yahoo! off the number three spot in ComScore rankings, it's not yet delivering the advertising revenues that its backers had hoped. Still, Disney clearly remains convinced otherwise, though the Mouse is likely to face a similar backlash from its local affiliates that greeted its surprise announcement of the landmark Apple tie-up back in 2005. Questions have also been raised about NBCU CEO Jeff Zucker's fondness for Hulu, but today, in the public statement, he gave the venture and Disney's involvement in it his complete backing. "Hulu has shown that, if you make quality content available on the web and combine it with an unbeatable user experience, viewers will come, and so will advertisers," he said. "The addition of some of the best content Disney/ABC has to offer will only enhance Hulu's standing as a top site for high-quality video entertainment." The next major development in Hulu's story is likely to be its international expansion, which some believe could happen very swiftly indeed, with the UK still the obvious and hot favourite to be first in line. Jonathan Webdale 30 Apr 2009 © C21 Media 2009 
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