Netflix may be encroaching on Hulu’s business turf, with a recent deal between the DVD-rental company and NBC Universal getting Hulu executives upset, reports Mediaweek.
NBCU allowed episodes of "Saturday Night Live" to be distributed through Netflix’s Web service the day after they air — a service previously available on Hulu, the story says. Netflix typically doesn’t provide episodes from a show’s current season, with Hulu offering that ability, one which is seen as a differentiator between the two services until now, the story says. Hulu executives are worried that its exclusivity might erode further if the NBCU deal for "Saturday Night Live" prompts other networks to copy the deal, the article notes.
Hulu is reportedly planning an IPO, "to basically fund future programming payouts," the article says.
Then the story quotes Andrea Kerr Redniss, vp, group director at Moxie Interactive saying that sshe believes that Hulu will "have the IPO and I think it will collapse."
The article says some speculate that Comcast will pull eventually NBC Universal out of Hulu. [Comcast is expected to gain control of NBCU sometime in the next six months.]
The article also says, "Still, what’s striking is that for all the doubts digital buyers have about Hulu, they shower love on the site as an ad vehicle. ‘If you take the networks’ issues out of the equation for a second, there are very few comparable ad environments,’ said Donnie Williams, vp, director of digital strategy, Horizon Media. Williams said that brands are drawn to Hulu’s highly engaged audience, uncluttered ad experience and ability to provide custom campaign research."