Comcast has to sit on its hands while Hulu drama plays out

Comcast owns a big chunk of Hulu, but the company has to sit on the sidelines while the future of the online video site is determined even though the end result could greatly affect it.

Comcast ended up with a piece of Hulu when it acquired majority control of NBCUniversal from General Electric Co. At the time, there was great concern about what Comcast's acquisition of NBC would mean for the future of Hulu. Many consumer advocates, lawmakers and media watchdogs feared that Comcast would view Hulu as a competitor to its own cable distribution platforms and try to squash it. Indeed, in the consent decree approving the deal, the government said, "Comcast has an incentive to prevent Hulu from becoming an even more attractive avenue for viewing video programming because Hulu would then exert increased competitive pressure on Comcast's cable business." When it signed off on the deal, the government essentially told Comcast that it could retain its stake in Hulu but also had to give up its voting rights and board representation. As part of the approval order, Comcast was also ordered to provide programming to Hulu on the same terms as the other owners. Earlier this week, News Corp. was near a renewal deal for its content with Hulu and Disney is now following suit. Comcast will also now do the same per its deal with the government.