The latest its that Apple is starting to look at Hulu. Very interesting to say the least. I had suggested that Apple would look bigger than Hulu and go after Netflix. But the goal is the same. Get a streaming service to bolster the iTunes asset as well as give a kick start to Apple TV. It would appear to make sense, Hulu is looking to be acquired and skip the whole IPO dance. They offer a strong menu of streaming content for any potential buyer, however they have the same problems Netflix has run into with regards to securing the rights to content. While Disney and Fox are part owners, no guarantee they play nice once they have divested their parts of Hulu. Of course Hulu does not have the DVD in red envelope stigma. This is a minor issue, or is it? Hulu has a bit of a more “coolness” associated with their brand. That might slot in nicely with Apple. For Apple, they are flush with cash, anyone see their latest quarter? With over $7b in profits from the quarter, they could purchase Hulu…three times over.
So if this feels so right, why will it not happen? I agree with many points made in this piece – click here. I think this comes down to Apple’s absolute draconian desire to control their content dissemination. I am not sure that Apple will want to dilute iTunes, if they add Hulu to their portfolio there will invariably be some slight conflict between iTunes and Hulu. Apple knows they need to continue to bolster their streaming services, but they will stick it out with their own branded offerings, namely iTunes.