Hulu Said Buying Chinese Video Startup: Good Move


Why build when you can buy? That seems to be the spirit at Hulu, the much-delayed YouTube killer being assembled by NBC Universal (GE) and News Corp (NWS). TechCrunch reports that Hulu is spending around $10 million for Chinese video startup Mojiti, one of zillions of YouTube clones. Presumably, Mojiti’s video platform will be used for the guts of Hulu’s site. We think the buy is a smart move.

TechCrunch is surprised that Hulu would buy a startup rather than building a custom video platform. But in a flooded industry with ugly economic prospects, many of these companies — especially those without established communities, like Mojiti — are a dime-a-dozen commodity. The reported price of $10 million barely dents Hulu’s $100 million war chest — and is a bargain compared to the $65 million Sony shelled out for Grouper a year ago. And anything that can help Hulu get its two-years-too-late site up as quickly as possible is money well spent.

See Also: Hulu: NBCU-News YouTube Killer Has Name, Problems, Economics of Online Video 1: One Tough Business, Economics of Online Video 2: Unit Cost Structure