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Can Hulu Hold Off TV.com?

February 19, 2009
by Michael Learmonth
Reporter, Ad Age

Michael Learmonth

When NBC Universal and News Corp. created Hulu, they gave the video portal a valuable but short-term asset: exclusive rights to distribute NBC and Fox shows outside of the media giants’ own websites.

From that base of content, Hulu.com has become the fourth-biggest online video distributor by unique visitors in January, behind YouTube, Yahoo and MySpace, according to the latest from Nielsen VideoCensus. In total video streams, it’s No. 3, with 232 million, behind YouTube (5.8 billion) and Yahoo (277 million).

But the exclusive part of that NBC-News Corp. deal lasts only two years, and Hulu knows all too well that the scarcity that helped it establish an audience (and brand) is going away soon. Hulu has never said exactly when the deal expires, but it’s likely within a year after the first anniversary of Hulu’s public launch, in March.

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