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The Walt Disney Company Message Board

  • edge_of_the_cliff edge_of_the_cliff Mar 11, 2013 7:24 AM Flag

    What is happening with Hulu?

    Anyone?

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    • erin_x@rocketmail.com erin_x Mar 19, 2013 2:55 PM Flag

      hulu sucks.... go see ZAAP this could be your lucky day

    • Hulu was a fine attempt by the content creators to have some control over streaming and reach their customers directly. The problem they ran into is three fold: Their cooperation failed to provide enough value add to anyone that upgraded to the premium "Hulu Plus", the leadership of Hulu seemed "lost" and lacking a coherent strategy (this could have been because of the strong companies butting heads?), and third they faced intense competition (free video services on the Internet and the very capably ran Netflix).

      That left them with a couple of options: They could greatly enhance their own value offering in Hulu Plus, they could sell Hulu to another company that may be able to compete with the Internet video services and Netflix, or they could shut it down and hope they can work within a market environment where they don't control the link to customers.

      They could not make the first option work, and that leaves them two others. They tried to sell Hulu to Apple and undoubtedly some others... but have thus far failed to do so.

      Disney is working with News Corp to try to find some option... but I think Disney has largely moved on in their thinking. Not long ago, they signed a very big deal with Netflix and shut down their own little streaming service. My guess is that they have either decided to focus on monetizing streaming thru third parties (like Netflix), or they may actually try to buy Netflix (which would give them the link to customers and a huge base). I would say this would be a good chance, but if it is why would they have announced a deal that shot up the valuation of Netflix? Hard to say... One thing I think is clear is that Hulu is something I think they are most interested in just getting rid of.

      ~William
      PS: Disclosure: I am invested in Disney

      Sentiment: Hold

 
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