Photo: Screengrab from DISHStudio on YouTube
Most of the speculation around the bidding for Hulu centres around big Internet companies like Google, Amazon, and Yahoo.But a source who is familiar with the thinking of Hulu’s top executives says that a big TV carrier like Dish is the more likely buyer.
Because as others have pointed out before, the value of Hulu’s content is only as good as its contracts — as soon as those contracts expire, there’s no guarantee that Hulu’s buyer will be able to renegotiate for that same content on the same (or better) terms.
But Hulu actually built a lot of interesting back-end technology to deliver video over the Web, and this person claims that DirecTV’s sellers are including this in their asking price.
Google, Yahoo, and Amazon don’t need that technology.
But it could be very valuable to a TV provider — particularly since Dish is planning to roll out a movie-streaming service. In addition, Dish doesn’t have to worry so much about the value of Hulu’s contracts, since it negotiates for TV content already.
That said, the deal apparently doesn’t look so great to Dish competitor DirecTV, which reportedly dropped out of the bidding a couple weeks ago.
In addition, Google may have ambitions to become a TV carrier itself.
This person expects the Hulu deal to close by the end of the year. Stay tuned.
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