Apple In Early Talks With Hulu
Leaving the online and entertainment industries in a tizzy over the implications, Apple is reportedly eying a Hulu buy. "Apple, the world's second-most-valuable company, is in early talks that may lead to an offer for Hulu," reports Bloomberg, citing sources. "It's no secret that Hulu is shopping itself around for a potential suitor," PCWorld writes, adding, "Any suitor would gain the rights to a significant amount of content in one fell swoop."
"Hulu would give Apple a new subscription service and represent a possible challenge to Netflix," writes Bloomberg, which estimates that Hulu could ultimately sell for over $2 billion.
According to recent data noted by AppleInsider, Apple holds just 4% of the digital streaming and downloadable video market in the U.S in a three-way tie with DirecTV and Time Warner for third place. "Netflix takes up the lion's share of the market with 61 percent of all viewings, while Comcast placed second with 8 percent."
"Part of the ecosystem of Apple's future is to include more video," said Scott Sutherland, Wedbush Securities analyst, tells Bloomberg. "It's something they are focused on."
As CNet notes, perhaps telegraphing the would-be deal, Apple Chief Financial Officer Peter Oppenheimer said on an earnings call this week: "Look for some more content later this quarter across the various stores ... We have some neat stuff coming."
Still, "The Bloomberg story says only that Apple is 'considering' bidding for Hulu, so it's not clear that the two companies are even close to negotiating a sale yet," notes GigaOm.
Under the headline, "Don't Hold Your Breath on That Apple Hulu Deal," All Things Digitalwrites: "Yes, Apple has met with the bankers marketing Hulu ... But I've yet to find anyone who thinks Apple is a serious candidate for the video site."