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> 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 n
by 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.