"Fox Broadcasting owner News Corp. and ABC owner Disney are contemplating pulling some free content from Hulu, say people familiar with the matter. The media companies are also moving to sell more programs to Hulu competitors that deliver television over the Internet, including Netflix Inc., Microsoft Corp. and Apple Inc."
So reports The Wall Street Journal. [Note: The WSJ is behind a firewall and may charge you to see this story.]
The article, by Sam Schechner and Jessica E. Vascellaro, adds, "In what would be a major shift in direction, Hulu management has discussed recasting Hulu as an online cable operator that would use the Web to send live TV channels and video-on-demand content to subscribers, say people familiar with the talks. The new service, which is still under discussion, would mimic the bundles of channels now sold by cable and satellite operators, the people said."
The authors of the WSJ piece also spoke to Bruce Rosenblum, who runs the TV division of one of the major studios, Warner Bros, who told them, "It remains unclear what the business model is for Hulu. At some point, if enough people turn off cable, then you’ve got a complete disruption of the business model."
The WSJ piece is a detailed feature story on the debate within Hulu by its owners and the entire article (link above) is clearly TVWeek’s pick as the Must-Read story of the day.