PROOF CRIMINAL THUG CAN NOT GET CONTENT AND WHY? $5B+ OFF BALANCE SHEET COOK BOOK BILLS TO BE PAID:Hulu Wrestled this One Away from Netflix
By singhlion2001 . 11 minutes ago . Permalink
Hulu Wrestled this One Away from Netflix
By Chad Henage - October 2, 2012 | Tickers: LYV, NFLX, DIS, WWE |
Chad is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.
All I can say is, Netflix ) you certainly had your chance. A recent announcement by WWE ) confirmed that the entertainment company has signed an agreement with Hulu in which WWE will provide all of its content exclusively to Hulu Plus subscribers.
What's The Big Deal?
I originally found out about this from an article in The Chicago Tribune, and was honestly shocked that Hulu won this business. Netflix has already licensed multiple character-specific series' from WWE, and it seemed like licensing their weekly shows would be a natural continuation of the relationship. If Netflix made this happen, it would have given the online-video provider some much needed current content. However, Hulu has now become the destination for millions of WWE fans.
If you're not a wrestling fan, maybe this sounds like it isn't that big of a deal. But let me assure you, WWE fans are some of the most loyal among all television viewers. WWE routinely flashes promotions during their shows saying that the previous week's show was watched more than any other show on all the major networks combined. It's not unusual for these shows to attract more viewers than events like the NBA playoffs or NFL games. The company's fans are very socially active, and topics on these television shows begin trending on Twitter within minutes. WWE RAW is also the longest running weekly episodic program in the history of television. RAW has aired over 1,000 episodes, which is nearly double the number of episodes of such classics as Seinfeld, M*A*S*H, and Lassie, just to name a few.
How Does This Change Hulu's Value?
There are many wrestling fans (like myself) that aren't able to sit through 5 hours of programming between Monday and Friday night. My family wants to watch other things, and I understand. In the past I could watch full episodes of WWE Smackdown on Hulu Plus, but the license was only for viewing on a computer. This was extremely frustrating, as I have both an iPad and a PS3 that would have been better options. The new deal with Hulu not only solves this issue, but with the addition of RAW and the company's other shows, makes Hulu Plus a much better value. Hulu is backed by Walt Disney (NYSE: DIS), NBC Universal, and News Corp., and only has about 2 million subscribers, but deals like the WWE contract will help that number grow. The contract is exclusive and also covers a “multi-year” time-frame.
How Does This Hurt Netflix?
I understand that NBCUniversal backs both Hulu and USA Network (which carries WWE RAW). But I honestly can't believe that Netflix couldn't find a way to make this deal. An expanded relationship with WWE would've been a perfect fit considering that these episodes run year-round, and are televised every Monday and Friday. However, not only will Netflix not have access to the RAW and Smackdown shows, but WWE is also launching a new show called Main Event on Oct. 3 on the independently owned ION channel. This gives Hulu three brand new shows that run year round on an exclusive license. There is no way to refer to this as anything other than a huge loss for Netflix.
Sentiment: Strong Sell