Hulu Owners Agree to Disagree Over Its Future Direction


What? You thought Disney and NewsCorp would be able to agree on something as simple as the fate of the showbiz paradigm?

Cuz that’s what this really is, you know.

Or as the Wall Street Journal (which is owned by NewsCorp) puts it:

News Corp. and Walt Disney Co. have begun discussions about resolving uncertainty over their jointly controlled online video site Hulu LLC, with one possible outcome being that one or the other company sells their stake.

The two companies, which each own about a third of Hulu, have each indicated at different times over the past few months their willingness to buy the other out, the people say. There is also the possibility both companies will decide to sell to an outsider….

The problem, of course is that there’s no reason on earth for Disney and NewsCorp to play together nicely because each company is responsible to a different set of stockholders and has to put its interests ahead of, well, of Hulu’s and the public’s as well. Historically, the two companies have disagreed about whether Hulu should focus on its subscription service (NewsCorp’s view) or turn to an ad-supported business model (Disney’s).

Stay tuned for further coverage of what could be a very cool and very big battle!