Comcast/NBC deal has huge Hulu implications
It’s taken several months, but it looks like the deal is done: Comcast is buying NBC Universal from GE. Well, at least 51% of it.
While the deal still has to pass regulatory hurdles, it seems likely that The Tonight Show and The Office are going to be part of Comcast’s vast cable operation and its own array of TV programming that includes E! Entertainment, G4, and multiple sports channels.
Comcast is also getting something else out of the deal: Hulu, one of the hottest web properties around and something that Comcast is looking to kill. The fallout of this deal could affect the future direction of online video.
First, let’s be clear: nobody knows what involvement Comcast will have with Hulu. NBC Universal owns 30% of Hulu and Comcast will own only 51% of NBC Universal. In addition, NBC Universal will be a spinoff, meaning that it will operate in many ways like an independent company.
You can bet though that Comcast will have major influence behind NBC’s decisions, including the decisions behind how Hulu is monetized. Comcast has already declared that it prefers a subscription model with its TV Everywhere service, announced in June of this year. TV Everywhere lets Comcast and Time Warner subscribers access certain TV channels and shows online, including TBS and TNT (owned by Time Warner).
This could exactly be in line with Hulu’s future direction. We know that Hulu may start charging for content in 2010, according to an executive from News Corp. Comcast could push it further in that direction.
We think it’s very possible that a two-tiered system of free and paid content will eventually constitute Hulu. The cable giant isn’t going to try to kill Hulu, nor will it have the ability to do so. It realizes that online video is growing, not shrinking, and that it must find ways to adapt. Having Hulu in its arsenal is an asset for the company.
Let us alleviate some of your fears: Comcast won’t force NBC to pull out of Hulu, won’t be removing content from it (more likely, it’ll add content), and won’t make the entire thing a pay service. However, expect Hulu to evolve and expect it to include subscription services, but don’t expect a lot of interference from Comcast.