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Online video site Hulu, which is jointly owned by Disney, Fox and NBC/Comcast, is up on the auction block.
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Bids are expected to begin coming in this week from the likes of Google, Amazon and Yahoo. But according to one analyst, Hulu’s owners could be making a big mistake by selling right now.

BTIG analyst Richard Greenfield thinks that Hulu’s owners should reconsider selling the site. Greenfield thinks that while the site’s owners a looking for a quick cash-out, they should be looking down the road a ways.
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Says Greenfield:

Media companies should be going out of their way to retain ownership of Hulu and allow it to flourish. The bigger Hulu gets, the more dollars it can pay content creators on an annual basis. While that may be true if it is owned by a third-party as well, being invested in Hulu and sacrificing near-term profits for long-term value creation appears far too compelling.

Content licensing isn’t getting any cheaper. Just ask Netflix. Are Disney, Fox and NBC/Comcast making the right decision by spinning off Hulu? Or will their short-sightedness come back to haunt them in a few years when the site’s new owner is laughing all the way to the bank?

(via GigaOM)

4 Responses to “Analyst: Hulu’s Owners Shouldn’t Sell”

  1. Member [Join Now]
    s142424

    How long after they sell do they end up in conflict with the new owners over licensing fees?

  2. Member [Join Now]
    mkiker2089

    I agree they shouldn’t sell.

    Here’s the thing, how can you sell something that doesn’t exist, or won’t exist after the sale. Kind of like how GM was trying to sell Saturn. Saturn doesn’t exist without GM so of course no one could come to terms. Hulu doesn’t fully exist without the networks that own it. Where will their content come from? Whoever buy Hulu will have to get ready to keep forking over serious cash and still lose content in the process.

    The problem with Hulu is that it’s owners still haven’t embraced it.

  3. Member [Join Now]
    JoeZilch [joezilch]

    As a Hulu Subscriber I have to say I’m wary of the sale because costs, by the nature of licensing, will need to go up. Disney/Fox/NBC will always want $X for their content regardless of who runs the site. If Google buys it, Google will pay for the cost of $X, pass that on to their customers and then mark up the costs to make a profit thereby turning $X into $Z.

    There isn’t enough complete or current content on Hulu+ to really make me sold as being a customer so I’d have no problem jumping ship if the costs went up too much.