Disney movies and ABC TV shows will be available on Hulu.com now that Walt Disney Co. is taking an equity stake in the popular video streaming site, joining its founders, NBC Universal and News Corp.
The deal announced Thursday will bring older Disney movies to the site, along with ABC and Disney Channel shows such as “Lost,” ”Grey’s Anatomy” and “Wizards of Waverly Place” after they run on TV. Disney hopes to gain new online viewers that it does not already capture on ABC.com and pick up new income from sharing ad revenue on Hulu.
The new setup also brings the owners of three of the four major broadcast networks – ABC, NBC and Fox – into a fight for online eyeballs against the video streaming site TV.com, which CBS Corp. acquired last year when it bought CNet Networks Inc. for $1.8 billion. In February, Hulu pulled all its content from TV.com.
Another rival is Google Inc.’s YouTube, which is trying to become more than a repository for clips uploaded by the general public. It recently launched a “Shows” section with older movies and TV episodes from partners Sony Corp., Lions Gate Entertainment Corp., CBS Corp., Metro-Goldwyn-Mayer Inc. and Liberty Media Corp.
Disney has a deal to provide short-form ESPN and ABC content to YouTube. But in general, ABC, NBC and Fox now will be pitting their premium material against YouTube.
“It’s an extremely big blow to YouTube,” said Gartner Inc. research vice president Allen Weiner.
Hulu ranks as the No. 4 online video site in the U.S., with 41.6 million viewers of its videos in March, according to tracking firm comScore.
That placed it behind Google sites, including YouTube, at 100.3 million; News Corp.’s Fox Interactive Media, which includes MySpace, at 55.2 million; and Yahoo sites at 42.5 million. CBS sites ranked fifth at 35.4 million monthly viewers.
Disney’s biggest contribution to Hulu will be its content, but the comp any will also make a cash investment similar to the amount that General Electric Co.’s NBC Universal and News Corp.’s Fox each contributed in March 2007, according to people knowledgeable about the deal, who spoke on condition of anonymity because the terms were confidential. It is unclear how much Disney paid, but Disney, News Corp. and NBC will all have similar-sized stakes at just over 25 percent.
Disney Chief Executive Robert Iger, Disney/ABC Television Group President Anne Sweeney and Kevin Mayer, a Disney senior vice president, will join Hulu’s board. Fox and NBC also have three representatives on the 12-member board.
Disney’s money will fund advertising for Hulu on Disney properties, said one of the people with knowledge of the deal. Fox’s and NBC’s investments went for similar purposes. During the Super Bowl in February on NBC, Hulu paid for an alien-inspired ad starring Alec Baldwin.
In October 2007, Providence Equity Partners invested $100 million for a partial stake that valued Hulu at $1 billion. Hulu employees also own an equity stake. Hulu’s latest valuation after Disney’s investment is unclear.
Peter Jackson Receives Honorary Palme D’Or As Cannes Boasts Star Power Despite Hollywood’s Retreat
The 79th Cannes Film Festival opened on Tuesday with politics, artificial intelligence and the shifting priorities of Hollywood taking center stage at the global film gathering on the French Riviera. The festival launched with a tribute to director Peter Jackson, handing the "Lord of the Rings" filmmaker an honorary Palme d'Or. He was introduced by actor Elijah Wood, who played Frodo Baggins in Jackson's fantasy franchise, one of many notable faces on the Cannes red carpet, including Bong Joon Ho, Joan Collins, Heidi Klum and James Franco. "I've never figured out why I'm getting a Palme d'Or. I'm not a Palme d'Or sorta guy," said the shaggy haired New Zealand filmmaker. Jackson was then serenaded with a rendition of the song "Get Back," a nod to his lauded 2021 documentary about The Beatles. The director sat stage right mouthing the lyrics. Jane Fonda and the Chinese-Singaporean star Gong Li officially opened the festival, with Fonda declaring: "Cinema has always been an act of resistance." It was a fitting observation for a film festival that has already seen politics take center stage. At the introduction of the jury that will decide the Palme d'Or, Cannes' top honor, jury members spoke bluntly about holding a film festival during a time of geopolitical conflict. The Palme d'Or jury weighs politics in film Paul Laverty, the Scottish screenwriter known for his films with director Ken Loach, pointed toward this year's Cannes poster, of "Thelma and Louise," while discussing attending Cannes during what he called "genocide in Gaza." Quoting "King Lear," he said: "Madmen lead the blind." "Cannes has a wonderful poster," said Laverty. "Isn't it fascinating to see some of them like Susan Sarandon, Javier Bardem and Mark Ruffalo... Read More