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Disney-Hulu Deal Is Ominous For YouTube

Hugh Pickens writes "Dow Jones reports that Hulu scored a big victory when Disney agreed to take a nearly 30% stake in Hulu and put full episodes of its ABC TV shows on the site, enabling users to see shows like Lost, Scrubs, Ugly Betty and Desperate Housewives for free. Disney views the move as a way to reach a new audience that isn't coming to the network's own website. Although the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers. Now Google is under mounting pressure to add more professional content to YouTube in order to attract more advertisers. According to Dow Jones' Scott Morrisson, the equity structure of the Disney-Hulu deal suggests that content creators want greater involvement in online distribution than Google has offered with YouTube. 'Content providers don't want to give (YouTube) content because the advertisers aren't there yet,' said Edward Jones analyst Andy Miedler."

5 of 133 comments (clear)

  1. One Simple Solution by drinkypoo · · Score: 4, Insightful

    Give the IP holders the right to run their own commercials, and some API to make it possible for them to change commercials out easily without a full reupload. Commercial lengths will manage themselves. In order to get this particular interface you need to share the cost of the downloads, which the system will broker. (e.g. the actual cost, not any cost to the user, since there is none.)

    However, I don't see it as that big an issue, either; Google is here to stay, so is YouTube, and if it became THE site for non-commercial content, I for one would still use it. I suspect others would, also.

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  2. Available outside U.S. ? by javacowboy · · Score: 5, Insightful

    Wake me up when Hulu is available outside the U.S.

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    1. Re:Available outside U.S. ? by robzon · · Score: 5, Insightful

      Exactly! It really pisses me off that I'm locked out just because I don't live in the states anymore. No wonder torrent sites flourish.

  3. "On-Demand" for FREE by I'm+not+really+here · · Score: 4, Insightful

    I care - here's why:

    On-demand from Comcast has commercials.
    "On-demand" from Hulu has less commercials.
    On-demand with Comcast costs me money.
    "On-demand" from Hulu costs me nothing.
    On-demand with Comcast has practically everything, but it costs money to watch.
    "On-demand" from Hulu has practically everything but is free to watch.

    I care, because finally I will be able to just pay for a connection to the internet.

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  4. Re:Professional Content by PopeRatzo · · Score: 4, Insightful

    I'm surprised that this AC's most insightful comment has not already been modded all the way up.

    From the summary:

    Now Google is under mounting pressure to add more professional content to YouTube in order to attract more advertisers.

    Why is that? Pardon me, but I go to youtube for everything from crazy mashups and ukulele instruction videos, vids of my friends in Alaska demonstrating their proficiency with the Chinese broadsword and other friends in Baltimore displaying their latest performance in the Brooklyn Battlefest. A guy playing the Super Mario theme on the balalaika. Some 8 year old kid in Japan shredding the hell out of a Jeff Beck tune.

    Are you telling me that Disney will having videos like this?

    Why is Google supposed to change its business model because Disney has a different business model?

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