Disney Takes Hulu Stake

LOS ANGELES: After weeks of speculation, The Walt Disney Company has confirmed that it is joining NBC Universal, News Corporation and Providence Equity Partners as a joint venture partner and equity owner of Hulu.

The deal brings a slate of Disney content to the streaming site, which is the third most popular video destination in the U.S. with 380 million videos viewed last month. Upon the close of the translation, Hulu will be home to full-length episodes of programs like Lost, Grey’s Anatomy, Desperate Housewives, Wizards of Waverly Place, Phineas and Ferb, General Hospital, The View and The Secret Life of the American Teenager, on an ad-supported basis. The offering will encompass titles from ABC, ABC Family, ABC Daytime, SOAPnet and Disney Channel, among other divisions of the company. Hulu will also house library feature films from The Walt Disney Studios. There will also be short-form content, including webisodes, sneak peeks and episode recaps from ABC Entertainment, ABC Family and SOAPnet.

Disney will have three seats on the Hulu board for Robert Iger, Disney’s president and CEO; Anne Sweeney, the co-chair of Disney Media Networks and president of Disney/ABC Television Group; and Kevin Mayer, Disney’s executive VP of corporate strategy, business development and technology. All other current directors from News Corp., NBC Universal and Providence will remain on the Hulu board. The financial terms of the deal were not disclosed.

“From our landmark iTunes deal to our pioneering decision to stream ad supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today’s Hulu announcement is the next important step in that ongoing journey,” said Iger. “Disney and Hulu share a focus on delivering the highest-quality entertainment experience and we look forward to working with Hulu to build value for our consumers, our brands and our shareholders.”

“We’re honored to welcome the Disney team in our mission to help people find and enjoy the world’s premium content, when, where and how they want it,” added Jason Kilar, the CEO of Hulu. “With the addition of shows like Lost, Desperate Housewives, Grey’s Anatomy and many more to Hulu, we continue to aspire to deliver a service that users, advertisers and content owners unabashedly love.”

Peter Chernin, the president and COO of News Corporation, noted: “Hulu, quite simply, now has the best premium content on the web. With three major networks and over 150 leading content providers providing content, combined with the best video user interface anywhere on the web, Hulu offers consumers the finest premium online video experience available today.”

“Hulu has shown that, if you make quality content available on the web and combine it with an unbeatable user experience, viewers will come, and so will advertisers," said Jeff Zucker, the president and CEO of NBC Universal. "The addition of some of the best content Disney/ABC has to offer will only enhance Hulu’s standing as a top site for high quality video entertainment.”