NBC, Fox online video site Hulu launches

Adds Sony, MGM content at last minute

By Ned Randolph -- Video Business, 10/29/2007

OCT. 29 | The partnership between NBC and 20th Century Fox to stream the networks’ programming online in a free, ad-based service, launched today, following last minute deals to add Sony Pictures Television and MGM Studios into the mix.

Hulu will make available TV shows and movies on its Web site, Hulu.com, and through a half-dozen media portals, including Yahoo, AOL, MSN, MySpace and Facebook.

Originally speculated to take on Google’s YouTube for the online video audience, Hulu also received a boost from Providence Equity Partners, which agreed to invest $100 million into the venture, according to Hulu.

There’s no word yet on exactly what the money will go toward except additional licensing deals and continued technology investments, Hulu spokeswoman Christina Lee said.

The deals with Sony and MGM will bring at least 40 TV shows owned by Sony and more content from MGM.

“We just signed the deals very recently. We’re still working out the details,” said Lee. “Between the two of them, there are 1,000 hours of content across full-length episode shows, shorts and films from MGM.”

Starting this week, users can visit any of the partnership Web sites, where they can watch full-length episodes as well as clips from a large library of content from NBC and Fox.

“It’s a seamless experience," Lee said. "It’s chromed into a player that fits within the customer experience that those individuals have designed. Partners decide the programming.”

The embeddable Hulu player is viral, so it can be placed anywhere online, Lee said.

Shows include current hits, archived classics, feature films—“anything from Arrested Development to Master and Commander the movie,” Lee said.

Hulu will act as a separate entity with its own operating and senior management team. It could eventually include other networks, such as ABC Disney and CBS Paramount, said Lee, who also appeared to leave open the possibility of other levels of service beyond the free, ad-based content.

“Currently, the Hulu service is a free, streaming service supported by ads,” she said.

Programming runs with 15- and 30-second ads that can not be skipped over, whether they are being watched on Hulu or one of the partner sites.

To use the service at Hulu.com, users must enter their e-mail to request an invitation.

Similar to YouTube, users can embed videos throughout the Web, including their own site, in order to further extend distribution. However, unlike YouTube, users can not upload their own content to Hulu.

A spokeswoman for Fox Television said Fox.com will continue to play current episodes of the network’s shows.

Some of these shows had been available already on network Web sites or via video-download services.

Hulu also will offer content from more than 15 cable networks, including Bravo, E! Entertainment, FX, Sci Fi and USA, as well as independent, Web-based providers. In addition, Hulu announced content partnerships with Smithsonian Networks, Reveille and World Wrestling Entertainment.

“We’re excited to bring a wide selection of popular content to fans, on-demand and free—from full episodes and clips of hit shows such as Heroes, House, The Office and The Simpsons, to feature films like The Blues Brothers and Sideways,” said Jason Kilar, CEO of Hulu. “The launch with our distribution partners as well as our beta is an important first step in delivering a service that lets people enjoy their favorites anytime, anywhere.”

News Corp. president and chief operating officer Peter Chernin said consumers are interested in easily accessing broad programming.

"As a single source of free, on-demand programming from some of the most popular studios and online networks, Hulu helps consumers quickly and easily find and enjoy the premium content they are looking for," he said.

NBC Universal president and CEO Jeff Zucker said, “NBC Universal is excited to give consumers the flexibility to enjoy our most popular shows online when, where and how they want. Hulu’s clean and crisp destination site, broad distribution network and embeddable video player make for a powerful combination and will provide substantial reach to consumers online.”

Read what analysts think of Hulu on Variety.com.