Google is currently in preliminary talks to purchase the online video streaming company Hulu according to the L.A. Times. Hulu is a streaming movie subscription service offering ad-supported on-demand shows, movies, webisodes, and other new media.
According to the report, Hulu is already meeting with potential buyers, which include Google, Microsoft Corp., and Yahoo Inc. Google is hoping to add professionally produced content together with its already established user-generated content on YouTube with the purchase of Hulu.
Hulu’s Appeal to Potential Buyers
Hulu was made more attractive for sale recently with Walt Disney Co. and News Corp renewing their licensing agreements. These two companies are among the larger entities involved in the online video service Hulu. The renewal of these agreements ensures that Hulu will continue to have access to a vast library of popular content, making it a more enticing acquisition target.
In an interview with the LA Times, Arash Amel, research director for digital media for IHS Screen Digest, explains:
“If you had those deals for 10 years, OK, you have time to build a business,” “But look at what they are trying to do to Netflix. They help you until you are successful then they want most of what you make or they try to kill you.”
Strategic Implications for Google
For Google, acquiring Hulu would be a strategic move to bolster its position in the online video market. YouTube, which Google owns, is already the largest platform for user-generated content. However, the addition of Hulu’s professionally produced content could help Google attract a broader audience, including those who prefer high-quality, professionally produced shows and movies.
Moreover, Hulu’s existing subscriber base and its established relationships with major content providers would provide Google with a significant advantage in the competitive streaming market. This acquisition could also help Google compete more effectively against other streaming giants like Netflix and Amazon Prime Video.
The potential acquisition of Hulu by Google also raises questions about the future of online video streaming. With major tech companies like Microsoft and Yahoo also showing interest, it is clear that the competition for high-quality streaming content is intensifying. This could lead to more mergers and acquisitions in the industry as companies strive to secure their positions.
Additionally, the integration of Hulu’s content with YouTube could lead to new and innovative ways for users to consume video content. For example, Google could develop new features that allow users to seamlessly switch between user-generated and professionally produced content, creating a more cohesive and engaging viewing experience.
In conclusion, Google’s preliminary talks to purchase Hulu highlight the growing importance of high-quality streaming content in the digital age. As the competition for viewers’ attention continues to heat up, acquisitions like this could shape the future of the online video industry. Whether or not the deal goes through, it is clear that the landscape of online video streaming is evolving rapidly, with major tech companies vying for dominance.
Source: LA Times
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