Hulu up for sale, Streamers should be concerned.
One of the most popular streaming video sites on the Internet, Hulu is up for sale.
According to the LA Times, Hulu, is putting itself up for sale. The ubiquitous Internet site, which streams past and present television series, has decided that there is no time like the present. Hulu is part owned by News Corp., Walt Disney Co., NBCUniversal parent Comcast Corp. and Providence Equity, and while a price has not yet been determined, the purchase would bring with it a slew of potential caveats.
The popular online television site, which has been the cause of much consternation in Hollywood, has retained investment banks Guggenheim Partners and Morgan Stanley to facilitate a potential sale, according to people familiar with the matter. Prospective bidders have received notice that the sales process would begin in about two weeks.
Hulu’s largest issue to date has been with regards to licensing. Most media sources have opted to allow a small percentage of shows to be shown on Hulu, and to use advertising embedded within the video streams and commercial type breaks before, during, and after the video has been viewed. Also, in mid 2010 Hulu started to offer ‘Hulu Plus’ which would allow access to a larger catalog of shows, and remove much of the advertising, for a small fee.
Hulu was originally thought to be offering an IPO valued at $2Billion some time in 2013, but with this recent move it is much more likely that Hulu will dissolve into a different brand, or be encompassed by a different service, than to continue in its current format. While not necessarily bad news, the sale might show signs of the rocky DRM foundation which Hulu is built on