The End Of Hulu As We Know It (And Comcast Feels Fine)

The initial public offering for Hulu is off the table. The fact that Hulu lacks long-term rights to its programming was “one reason” offered for the IPO postponement. That smells like a red herring given this wasn't exactly a surprise to NBC Universal, News Corp. and Disney, primary stakeholders alongside Providence Equity Partners. A likelier rationale: IPOs require consensus, and that’s not going to happen with this many cooks in the kitchen.

There’s no shortage of issues the principals could be disagreeing on here, but let’s focus on the biggest question mark that has hovered over Hulu for about a year now: Comcast, which is about to take over NBCU’s stake, needs Hulu like a fish needs a bicycle. A site that has built its fan base by offering TV episodes for free online is not of much use to a cable operator that wants to monetize that same window through VOD and TV Everywhere or Fancast or Xfinity or whatever cockamamie new name Comcast concocts next -- all of which lack the brand power Hulu has built. And so Comcast can't simply pull the plug on Hulu. If it keeps its stake in the company, the best move is to steer it further in the direction of Hulu Plus, which has a subscription model and multiplatform presence that fits in with the cable operator’s drive toward authenticated viewing experiences.