Disney Mulls YouTube, Hulu Deals
According to report author Staci Kramer, the latter negotiations are not as advanced as the former. Meanwhile, Disney is also in discussions over an exclusive programming deal with Hulu. Under this scenario, Kramer says Disney would have to choose between short-term guarantees that come from a YouTube deal versus the longer-term investment of having equity (an equal 30% share) Hulu.
YouTube accounted for 41% of all U.S. video streamed in February, according to comScore, compared with Hulu's 2.5% and Disney Online's .9%. The video sharing giant also had more than 100 million users. It will be interesting to see which way Disney decides to go with its online distribution strategy; Kramer notes that the discussions with Hulu and Google are being managed by the strategic planning group headed by corporate EVP Kevin Mayer.