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Leading content providers (News Corp, NBC, ABC/Disney) have stakes in Hulu. Therefore their incentives are aligned and it is unlikely that Hulu will be cut from

Leading content providers (News Corp, NBC, ABC/Disney) have stakes in Hulu. Therefore their incentives are aligned and it is unlikely that Hulu will be cut from the content. Quite the opposite, it can be given an exclusive content access (earlier, better quality, behind the scenes). Your argument can be applied in the same way to other companies: Netflix (movies), Amazon (books). Being a distributor (and thus depending on producers) is not necessary a business killer. Cable companies can not directly discriminate Hulu traffic due to net neutrality principle. And in the future most of the traffic will go through wireless carriers.

lftl 16y ago
> Leading content providers (News Corp, NBC, ABC/Disney) have stakes in Hulu. It's also part of the problem from an investor perspective. Hulu is pretty much never "profitable" but that completely ignores the fact that its major stakeholders get a huge chunk of its revenue since it's their content. I can't find the article now, but one stated the content providers receive upwards of 60% of Hulu's revenu. So Hulu doesn't make a "profit" but basically everyone that owns a stake in it is getting a good return on investment. That conflict of interest with the other major stakeholders would give me major pause about buying into Hulu. EDIT: I think this is the article I recall reading http://www.businessinsider.com/henry-blodget-hulu-turns-profitable-we-eat-crow-2010-4 http://www.businessinsider.com/henry-blodget-hulu-turns-prof... And the numbers there are different (and probably a bit better) than what I stated above, but the general point stands that you're buying stock in a company where the major stakeholders are getting a return regardless of whether Hulu turns a profit or not.