Disney Gets Equity Stake in Hulu Web Site, to Put Programs There

Walt Disney Co. acquired an equity stake in Hulu, the video Web service, as part of an agreement to supply programs to the site.

Disney, the world’s largest media company, joins General Electric Co., News Corp. and Providence Equity Partners as an investor in the site, the Burbank, California-based company said today in an e-mailed statement.

“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,” Disney CEO Bob Iger bloviated. “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.”

This is mostly a broadcast deal. Aside from a smattering of Disney Channel shows, it includes very little cable programming. There is, for example, nothing from ESPN. Presumably, that’s because Disney doesn’t want to upset the folks who actually pay to watch their programming.

from Bloomberg.com and Digital Daily