Apple Considers Hulu

Although the company declined to publicly comment, Apple is said to be in discussions concerning a possible bid for online video site Hulu. Last week, the owners of Hulu — Walt Disney Co., News Corp., Comcast and NBC Universal — confirmed that the ownership of Hulu was definitely in play.

A possible Hulu acquisition would provide Apple with a new subscription service featuring more video. Currently Apple provides video for it’s popular iTunes customers on an on-demand rental basis rather than a subscription.  Comcast, Disney and News Corp. have built a program rights extension of five years into the sale, creating a strong potential alternative to Netflix.

Estimates are that Hulu will command more than $2 billion.

For more, see this Bloomberg News article.

Hulu Up for Sale, 1M Paid Subs within Reach

For several weeks now, the trade press has been buzzing with rumors that Hulu is up for sale. Last week Disney CEO Bob Iger confirmed that the three media companies that own the online video portal — News Corp., Disney and Comcast’s NBCUniversal — are “committed to selling” the site. Iger did not reveal when a sale would occur, but predicted it was inevitable.

Nearly a dozen companies are rumored to be actively involved in discussions with Hulu, including Amazon, AT&T, Google, Microsoft, Netflix, Verizon and Yahoo. Read more

Entone Secures NECA Distribution Deal

Entone Inc., a provider of Hybrid TV and Connected Home STB solutions, announced June 22 that it has secured a deal with the National Exchange Carrier Association (NECA) to make its FusionTV solution available to the organization’s membership.

NECA, which represents more than 1,000 rural telcos in the United States, helps its members deliver high-speed, multi-use broadband services. The organization says that the FusionTV platform will enable its member companies and their broadband affiliates to offer video on demand (VoD) and other over-the-top (OTT) services on the TV. Read more

Suddenlink Launches ‘TV Everywhere’

Last week, rural cable operator Suddenlink launched Suddenlink2GO, an online video service featuring “tens of thousands” of full-length TV episodes and shorter video clips, plus more than 1,300 movie titles accessible via any computer with a high-speed Internet connection.

Authenticated subscribers will have access to content from the previously launched HBO Go and MAX Go services, available for no additional charge to all Suddenlink HBO and Cinemax subscribers. The site also offers a range of programming from Turner’s TBS, TNT, truTV, Cartoon Network and Adult Swim, as well as programs and clips available from Hulu.

It should be noted that most of the online content also is accessible through free, over-the-top sources, and available to anyone, regardless of their customer relationship with Suddenlink. The MSO is providing value by integrating its online offerings into a single, user-friendly interface. Read more

Blockbuster to Dish Network: Pay the Cashier

Dish Network announced early this morning that it had won the Blockbuster assets in the bankruptcy-court sanctioned auction.

The auction began in court early April 5 and then moved to a “closed door” session. Those bidding besides Dish Network included Carl Icahn who owns a considerable investment in Blockbuster and a group of liquidators and the aligned creditor group known as Cobalt Video.

Read more

What Will You Bid for Blockbuster?

April 4 is a big day for Blockbuster.  The U.S. bankruptcy court has approved an auction where the highest bid will take the fading home video rental company. Blockbuster is currently reporting a $68.4 million loss for the first two months of 2011.

Bidders include Carl Icahn, South Korean Telecommunications company SK Telecom, Dish Network and Cobalt Video holdings, a group of hedge funds that put forward the February 21 $290 million bid.

Blockbuster is thought to be a potential “brand” for on-demand platforms sought by both SK Telecom and Dish Network. The Blockbuster licenses with movie studios and television producers would give either Dish Network or SK Telecom a competitive package to Netflix. One added advantage provided by Blockbuster is an earlier window on theatrical releases.

NetFlix Plans to Develop Own Content

[Update: House of Cards will indeed debut on Netflix. Netflix has committed to a minimum of 26 episodes of the Media Rights Capital drama, which is expected to be available to its subscribers beginning in late 2012. See the press release here.]

Netflix is in advanced negotiations with two of Hollywood’s biggest names for an original show. Netflix is bidding on the exclusive rights for a two-season, 26-episode remake of the British political drama House of Cards, starring Kevin Spacey and directed by David Fincher. Fincher is best known for directing the Oscar-winning movie The Social Network. Several major cable networks are also interested in the show including AMC and HBO.

Deadline.com, which first broke the story, noted that the deal could be worth more than $100 million. Under the terms being discussed, Netflix would have the right to distribute the series online before any other outlet carried it; however, Media Rights Capital, the company which owns the rights to the show, would be allowed to make arrangements for later broadcast or DVD sales.

Netflix is clearly the market leader in video on demand (VoD) and DVD rentals, finishing 2010 with more than 20 million subscribers and boasting a constant and user-friendly streaming presence in the home though its many connected devices.

Earlier this week market research firm NPD Group Inc. issued a report saying the Netflix accounted for 61% of all digital movie streaming—including rented movies acquired over the Internet and purchased through Apple Inc.’s iTunes and cable video on demand services—during the first two months of this year. Comcast Corp. was in second place with 8%, while DirecTV, Time Warner Cable and Apple were tied for third place with 4% each.  Read more

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