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AT&T Can't Upgrade DSL Users, Yet May Buy Hulu
Company Pondering Joint Bid for Floundering Video Service
by Karl Bode 08:34AM Thursday Jun 06 2013
You can add AT&T to the growing list of companies considering shelling out money to acquire Hulu. Sources tell the All Things D blog that AT&T is pondering entering into a joint acquisition bid for Hulu alongside the Chernin Group. AT&T has historically offered a sort of "me too" Hulu clone web portal, but clearly would like to expand their web video offerings.

AT&T joins DirecTV and Time Warner Cable as possible suitors for the company, though none of them (especially AT&T and Time Warner Cable) will fix what's wrong with Hulu. Namely, that the people who have owned it have a vested interest in it never really upsetting the status quo. As a result, Hulu has traditionally been little more than a glorified ad for traditional TV, when it could have been something better (thus all the executive departures).

Does AT&T or Time Warner Cable strike you as the kind of companies likely to change any of that? Meanwhile, that's a good chunk of change both companies could put into oh, upgrading their broadband networks, neither of which are considered industry leaders when compared to Verizon FiOS or even Comcast. That kind of money could go a long way in upgrading the tens-of-millions of DSL users AT&T claims they can't afford to upgrade.

Hulu owners Viacom, Comcast and New Corp. are looking for around $1 billion for the company, though any buyer then has to turn around and re-negotiate a plethora of expiring licensing contracts. As such, the cost could wind up being much higher, and more than a few analysts think that whoever does wind up buying Hulu will need to be a grade A sucker.

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tpkatl

join:2009-11-16
Dacula, GA

All the more reason to not subscribe

AT&T is like the black death. They infect every product that they sell and find new ways to screw the customer.

Not that Hulu is worth subscribing to in the first place. Ultimately Hulu is going to die because of its limited selection.

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Hulu needs an independent investment group buyer

If Hulu is ever going to be an independent provider of video streaming they need to be independent from the cable companies as owners. Netflix & Amazon have no cable TV ties and make their streaming decisions on what is best for them - unlike Hulu. Some venture capital groups need to buy Hulu.
--
"If you want to anger a conservative lie to him.
If you want to anger a liberal tell him the truth."
tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

Poor Business

I'd have no issue with AT&T owning Hulu. Hulu sucks hard as it is... AT&T would be a fitting owner.

Hulu's business model wasa poor choice. Commercials for paying customers.... so customers are paying for the delivery of the content (Internet service which is akin to Cable to Sat providers) and paying a fee to Hulu. Hulu then makes money off already aired shows from commercials as well as what the customer pays. That a poor business model as Hulu is really triple dripping revenue.
Sammer

join:2005-12-22
Canonsburg, PA

Re: Poor Business

said by tcope:

I'd have no issue with AT&T owning Hulu. Hulu sucks hard as it is... AT&T would be a fitting owner.

The point is that it would be a waste of AT&T's money. Just like Comcast buying NBC will never be good for Comcast subscribers, AT&T wasting money on Hulu won't be good either.
tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

Re: Poor Business

said by Sammer:

The point is that it would be a waste of AT&T's money. Just like Comcast buying NBC will never be good for Comcast subscribers, AT&T wasting money on Hulu won't be good either.

Not good for who? AT&T? Anyone who cares, please raise your hand. It's not like AT&T has not made really poor decisions in the past (just ask T-Mobile where they got the $4 billion for their agressive LTE roll out). I would not mind if AT&T bought Hulu as I don't think Hulu offers much to their customers anyway. Certainly the problem with buynig Hulu is that it's only worth what it's content is. Contract renewals are a big issue. However, AT&T knows this and it might be a part of the deal.

ieolus
Support The Clecs

join:2001-06-19
Danbury, CT
Commercials for paying customers... isn't that what cable tv is now?
--
"Speak for yourself "Chadmaster" - lesopp
tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

Re: Poor Business

said by ieolus:

Commercials for paying customers... isn't that what cable tv is now?

Yes. Commercials pay for content. Customers pay cable for licensing fees and delivery of content. Hulu is asking for customers to pay their own delivery fee (Internet) and for the content but then also asknig the customers to watch commercials. Cable TV = 2 bills, Hulu = 3 bills (for already aired content... which, in some cases, is available for free on other sites.
etaadmin

join:2002-01-17
Dallas, TX
kudos:1

Simple...

I switched to hulu after netflix increased their prices but if at&t buys hulu then I'll cancel my subscription immediately.
ceciledian

join:2003-01-10
Cedar Hill, TX
Reviews:
·WildBlue

Aggravated

Just had two calls with ATT, they dropped me the first time. I'm paying $51 a month for DSL up to 6mg, seldom get 3 since i'm a long ways from the CO. The next plan down is $46. I can reduce my rate for 6 months by adding a freaking land line that I don't need. Why not just give me the single service I want for less, instead of a bundle with stuff I don't want for less???
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Aggravated

said by ceciledian:

Why not just give me the single service I want for less

Selling more services generates more revenue.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

I Love Sensational Headlines

said by Karl Bode:

AT&T Can't Upgrade DSL Users, Yet May Buy Hulu

Of course T can upgrade DSL consumers, but it's not the best business decision at this time. There are better ROIs than upgrading DSL infrastructure.