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Netflix Not Interested in Hulu
Though Verizon and AT&T Seem to be
by Karl Bode Monday 11-Jul-2011 tags: Video · competition · business · alternatives
There's a significant number of companies taking a look at acquiring Hulu, which has been shopping itself around for the last few months. Most of the companies taking a look at buying the company are names you'd expect, including Yahoo, Amazon Google and Microsoft. ISPs are also taking a look at acquiring Hulu, including Verizon and AT&T -- the latter of whom already runs a video portal that's essentially just a carbon copy of Hulu. Hulu's problem has been its cable owners have done their best to ensure that Hulu doesn't really threaten traditional TV, something that wouldn't change under Verizon and AT&T -- who wouldn't want it competing with FiOS TV and U-Verse TV, respectively. One company that isn't interested in Hulu is Netflix, and Hulu isn't interested in selling to Netflix either.

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xenophon

join:2007-09-17

Wouldn't change with ATT/VZW

quote:
Hulu's problem has been its cable owners have done their best to ensure that Hulu doesn't really threaten traditional TV, something that wouldn't change under Verizon and AT&T
agreed that this issue wouldn't change if ATT/VZW got Hulu. not sure if Google is the right matchup but at least this issue would be less likely under Google's helm. who else? maybe Viacom?
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Wouldn't change with ATT/VZW

It's still up to the content owners regardless of who owns the portal.
xenophon

join:2007-09-17

Re: Wouldn't change with ATT/VZW

true but at least getting the cable companies out of the picture opens the door more. you'd think content providers would want to use every channel available.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL
said by openbox9:

It's still up to the content owners regardless of who owns the portal.

That's true, up to a point. If you look at the content on Hulu, it's being primarily fed by its owners. If Hulu were to change hands to an entity not so invested in current distribution channels, you might see other programming become available, such as shows from foreign networks like the BBC, CBC, etc. You might also see it opened up more to independent producers who can't get their shows on cable or broadcast networks.
notovny

join:2010-03-08
Toledo, OH

Hmm.

I sometimes get the feeling that the only reason that the networks haven't murdered Hulu in its bed is because they don't have an alibi that works while it's still sleeping in their house.
elefante72

join:2010-12-03
Reviews:
·Verizon FiOS
·voip.ms
·PHONE POWER
·Time Warner Cable

Google needs something like this....

With the recent acquisition of SageTV (much to my chagrin), Google can easily put placeshifted Hulu in there, and potentially integrate that with on-prem media DVR, so for instance stream if you don't have it locally, and not if you have it in your "googleTV" repository. This way it is additive vs replacement for your cable provider. Now we all know home internet caps are coming, so this may be really interesting because you will need to have a DVR to do timeshifting otherwise if you stream everything you will blow out caps. Add to that the Hulu licensing library and now Google becomes a content provider.

Guess whats coming next: If you stream Verizon "premium" content, then we don't count that against your cap, you stream a movie from netflix--put money in the jukebox. This is why I hold true that the US should nationalize broadband. It will have to, otherwise the content providers will be telling us what to do. Maybe the minions are good with the raping, but I am not. Once my VZW unlimited goes away, so do I to prepaid. If Sprint folds, watch out. Game over until breakup.

Now the fact that telcos have become service providers in addition to content providers is why copyright wars will ensue (we are all guilty first), but at the end of the day these guys know that owning the bits "data, licenses, etc" is where the premium in margin is from a consumer lockin perspective. Not to say the pipe to the home isn't massively profitable, but the monster must be fed and since everyone is getting into content "data" Google needs to step on board otherwise it will be at the mercy of the content providers.

As content providers become MORE borg-like, they will attract ad dollars and as that happens they can start dictating terms to Google on search or go after their ad dollars directly. Because at the end of the day they could care less about the actual quality of the content (witness the poor content on cable), its ONLY about subs, ARPU, and ad dollars. If they can unplug crappy cop show 2011 with crappy cop show 2012, no problem. What are my impressions?

If this happens, the only recourse that google will have left is creating their own internet and use the unlicensed spectrum for their droids...

In any case the war on caps and content will be amusing (to our detriment) for the next decade...Since the government is to inept to keep deficits under a trillion, I think these jokers will be running wild...And Americas can not put down the remote or phone...
SunnyD

join:2009-03-20
Madison, AL

Re: Google needs something like this....

Problem is, Google won't get any revenue out of it. The Content industry hates Google so much that all Google (or anyone that buys that Big Content doesn't like) would walk away with is an empty shell of a service once the content licenses are revoked. Nobody will watch a service that has no content.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Google needs something like this....

The big content owners won't walk away. That would be financially stupid of them. What they'll do is jack their rates way up, just like they're trying to do with Netflix.

But Google can indeed benefit. I don't think they plan to build one or more FTTH networks just for fun. They either want to build them as a test of what they can do themselves or as a model of what cities can do. And video is one of the things yo can do very well on FTTH, but it could be complex to run, at least for city governments that really have no experience doing it. It's a lot easier for cities to lay and maintain fiber than to offer services over it. Someone else could do that. Someone like...Google.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: Google needs something like this....

and they won't just try- they will raise their rates; as they can. and content owners would pull from Google or make the fees/rates so high it wouldn't make sense for Google to even have the service.

Google will NEVER offer services that mass numbers of people would pay for. The reason for this is due to Google does NOT have customer relations. They prefer to do everything BY email add message boards. What happens if you can NOT get online? how are you suppose to email them and dig through their help site to find out what's wrong?

Google needs to stick with what they do best and track people only to sell the info to advertisers.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Google needs something like this....

I agree that Google isn't good at retail, but they are very good at making systems work. Ask any company or university that uses Google Apps why, and they'll tell you it's because Google can offer and maintain those services cheaper than they can do it themselves. No, you can't call up Google and get something fixed, but those organizations that pay them big bucks certainly can.

If you, as a consumer, have a problem with the TV service in your hotel room, you don't call LodgeNet, who could be providing the service. You call the front desk, and, if necessary, they call LodgeNet. Google doesn't have to interact directly with end users. The FTTH provider can still do that but rely on Google to make the infrastructure work, which is what they do best.

Oh, and if you want an almost perfect example of this in action, research Headend in the Sky (HITS).

cyber

@verizon.net

they should start buying all the ISP's

with all the isp's caping now they should buy out all the isp's

Trimline
Premium
join:2004-10-24
Windermere, FL
Reviews:
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Re: they should start buying all the ISP's

said by cyber :

with all the isp's caping now they should buy out all the isp's

I find myself surprised that it already hasn't begun, at least offering some type of broadband. There is a whole lot of money in doing so.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: they should start buying all the ISP's

said by Trimline:

said by cyber :

with all the isp's caping now they should buy out all the isp's

I find myself surprised that it already hasn't begun, at least offering some type of broadband. There is a whole lot of money in doing so.

The last thing Google wants to do is give the Feds an excuse to treat them like MS of old and hamstring them with years of anti-trust action. And that is what would happen if Google bought up some ISPs.
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cybercrimes

join:2003-12-24
Honey Brook, PA

netflix and isp's

netflix need to buy the isp's do to all the caping to save themselfs isp's are getting way to money hungry there caps range from 5gigs to 250 gigs in my area
osravens

join:2011-01-26
Cumberland, MD
Reviews:
·Atlantic Broadband

Re: netflix and isp's

And how is Netflix supposed to then sustain $8/month for your streaming service?

That's a very short-sighted way of looking at it. Netflix is not going to get into the ISP business, and they don't have any need to be in it. They are a content provider, and content providers should not have to vertically integrate to keep ISP's from discriminating against them.

How many of the caps in place aren't a restraint of trade are beyond me, especially AT&T considering it's an IPTV service.
osravens

join:2011-01-26
Cumberland, MD
Reviews:
·Atlantic Broadband

Tons of Leverage for Content Providers

Considering it's a consortium now, any deal to sell Hulu is going to be clouded in extortion. They're basically going to have to agree to be part of the cabal, or the product will end up devalued. I can guarantee they will take less money to keep Hulu in safe hands.

If it somehow ended up in the hands of whomever wanted it at the highest price, I could easily see them pulling the content and devaluing the product, taking their money and running.

baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI

Ownership

Wasnt hulu owned by NBC? and isnt NBC now owned by Comcast?
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Ownership

NBCU/Comcast has a stake in Hulu. Not sure how much, though.

But I doubt that's why the service is up for sale. It's more likely that it's because the content owners want more money out of Netflix. How does that matter here? Because, if they charged Netflix a high price for their shows but sold to Hulu, a service they own, for a much lower price, they could be accused of manipulating prices to force a competitor out of the market. By selling Hulu, they essentially exit the online delivery business, so they can then jack up the rates on their programming and let the two services fight it out for the rights.

fuziwuzi
Not born yesterday
Premium
join:2005-07-01
Atlanta, GA

RIP

I enjoy Hulu, but I'd rather see it die than become part of Verizon or AT&T. That would be like having your Mom become a zombie.

Robotics
See You On The Dark Side
Premium
join:2003-10-23
Louisa, VA
Reviews:
·Verizon Wireless..
·Comcast

Be Gone With It

HuLu flat out sucks in my opinion. I thought they were "OK" when they first came out and I was one of many beta testers. But they have dug a deep whole for themselves...and for several years don't seem to know where their going.
It needs to just go away. Their a joke. Period.
--
Long you live and high you fly, and smiles you'll give and tears you'll cry,
and all you touch and all you see, is all your life will ever be.

odreian615

join:2006-01-18
Chicago, IL

At&t, Verizon, Comcast, and TWC will get it

For dirt cheap.

kynshiro

join:2004-09-13
Sullivan City, TX

what about the caps?

I have att and now I am force to watch how much I see on the internet. Can't even watch Netflix, Youtube, or hulu thanks to att caps. I meter running in my computer just to show me how much I have downloaded and thats not even counting my son watching content on the Wii or the wife on the laptop. ATT sucks.
osravens

join:2011-01-26
Cumberland, MD

Re: what about the caps?

There's always business accounts.

Since you live down along the border, that's probably Time Warner country, meaning you don't have a cap. Yet. I'd switch to TW.

kynshiro

join:2004-09-13
Sullivan City, TX

Re: what about the caps?

unfortunately I live in an are that doesn't have access to TW. I live in the middle of nine acres and I barely qualified for ATT DSL service. Which is the only broadband in my area.

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