Hulu needs to the money to bring in new content. Netflix is signing up more and more partners for streaming movies and TV shows. Hulu can’t afford to compete with Netflix right now.
The IPO, which would likely be led by Morgan Stanley, would be filed by the end of the year, with the actual offering coming in January or February of 2011.
Hulu is the leading site for free web television and movies. It also recently launched a paid service with a deeper content library.
Reuters’s sources say the IPO isn’t a sure thing — the company is also considering raising additional funds from existing investors, which include Disney, GE, News Corp, and Providence Equity Partners.