4 ms·
Except Hulu doesn't have much inventory, at least on an exclusive basis. It has eyeballs and distribution. The assets belong to the studios and networks. A rol
by tomkarlo 13y ago
Except Hulu doesn't have much inventory, at least on an exclusive basis. It has eyeballs and distribution. The assets belong to the studios and networks.
A roll-up is not exactly a new strategy, especially in media. You attempt to build economies of scale by amassing audience and distribution. Historically, however, the prices you pay (especially once folks figure out what you're doing) often prove to be inflated later on.
- redler 13y agoAs an acquisition, Hulu is essentially a bag of content contracts with expiration dates. The infrastructure has value, but it's probably incidental to an acquirer like Yahoo. The challenge is to turn that bag into a property with lasting value; Yahoo is in a much better position to multiply that value than the group of current owners whose half-hearted "coopetition" has resulted in the fickle and watered-down service we currently enjoy.
- marcamillion 13y agoThank you! News Corp, Comcast, etc. They don't have the experience selling online display media like Yahoo! Guess who else does? No one!!!! So they have an incentive to cooperate. As I said earlier, if Mayer makes a deal without locking up long-term contracts, then on the surface that seems like a dumb deal. Given what I have seen of her so far, I would be surprised if she did that. She is doing good so far.