Thursday, October 13, 2011

Hulu No Longer For Sale, Studio Execs Find Tech Giants Aren't Fool

With tens if not hundreds of billions in cash, one might believe that the tech and wireless giants would do anything to find a way to reinvest some of that. And perhaps some folks believe that the tech execs, some being nerds, could be fooled into parting with a couple of billion dollars.

Well, the studio executives who represented the companies that owned Hulu found out that these nerds are no fools.

No one was going to buy a company that was at the mercy of people who could make or break it simply with what is offered or taken away. And who would want Hulu without some sort of guarantee that the content it currently had couldn't be taken away in a couple of years.

Google was willing to double the asking price for Hulu of the studios would give Google four years instead of two years of content.

The fact that the execs pulling the strings at Hulu did not want the Google deal is telling as far as what they are thinking.

After two years and two billions, the new owner of Hulu would have to come back to the table and renegotiate for the rights. And that would be when the studios can ask for billions more.

So when they realized they could not fool anyone into a such a bad buy, Hulu owners decided their ball home since no one will play by their rules.

So if the mobile giants, Apple and Google, want a way to distribute content, they'll need to find other ways.

From what I can tell, Microsoft seems most willing to deal and work with content providers and distributors.

It'll be interesting to see what happens next.

Source: Techcrunch.


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