Hulu: An Apple acquisition that could squash Netflix

“Given that Apple has shown it’s willing to dabble in large scale M&A, the big question is what does it do next? While there’s work for Apple to do with respect to digital music and streaming radio, the next frontier could very well end up being streaming video,” Rocco Pendola writes for TheStreet.

“If Apple goes there — and there’s no shortage of rumors speculating it will — the logical place to look to propel the strategy is Hulu,” Pendola writes. “Here’s what we know about Hulu: The owners of Hulu — NBCUniversal (a Comcast subsidiary), Disney and Twenty-First Century Fox — aren’t quite certain how to move forward with Hulu. Maybe they can’t get on the same page. I don’t know. But they simply haven’t maximized the platform’s potential. If the owners of Hulu make moves to go full on boar with the platform, they could put serious hurt on Netflix.”

Pendola writes, “The owners of Hulu might actually be able to execute a Hulu grand plan using Apple as a conduit, however the question is… is this — streaming video — an area Apple wants to get into?”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

24 Comments

  1. Like how iRadio squashed Pandora. Netflix would really have to screw up to allow an Apple/Hulu partnership take over their streaming dominance. Yes, they could squeeze them for some market share, but Netflix is a very competent incumbent, as long as they stay away from future Quixsters.

    1. I’m visualizing an adult male, satiated pig refusing any more helpings at a banquet. Can the females be full sow?

      full bore
      adverb
      at full speed or maximum capacity: the boat came full bore toward us.
      adjective [ attrib. ]
      denoting firearms of relatively large caliber: full-bore handguns.
      • complete; thoroughgoing: a full-bore leftist.

    2. Actually, Mikhail, the phrase is not uncommon in some production facilities and is used as an intensifier, along the lines of “throw everything we have at it” or “loaded for bear”, after “full-on assault”. Salon stylists know boar bristles make the finest hair brushes, and a full on boar treatment turns Plain Jane into Scarlett Johansson.

      1. Agreed.

        There are many sites out there, offering free downloads of movies and tv shows; its Napster all over again.

        This is puts Netflix profits and the idea of honest subscription in troubled waters regarding, fair competition and customers.

        MoviesPlanet.tv (who looks exactly like CinemaNow) and Show Box (who are exclusive on Android) allow piracy to freely happen. I don’t like it. Its not right. And, I hope Apple will steer away from the present conditions such as Hulu buyout or a Netflix acquisition. By, staying on course with the iTunes vision.

        I love the iTunes rental method better.
        Its a wonderful way to pay for tv shows rather than paying for hundreds of cable just for a few speciality channels.

        1. And what happened to Napster? Where is it today? Oh yeah, Apple made it easier to download LEGAL music at a reasonable price via iTunes. This is different how?

      2. Piracy isn’t THAT easy. Piracy websites can be filled with viruses and even on occasions Mac trojans, downloaders can receive unsettling notices of copyright violations or even subjected to lawsuits, many fake videos get uploaded, and sometimes the videos are in extremely poor quality.

        Legal digital videos can be much easier than dealing with all that – there’s a huge market for it at reasonable prices.

  2. Rocco Pendola intellectual contributions to the Apple news beat:

    “Apple Must Fire Tim Cook”
    “Top 5 Things Should Buy With Their Cash”
    “Apple Should Buy X to Squash Y”

    Coming soon:
    “How Apple Could Win the Market Share War With This One Weird Trick!”

  3. DirecTV would have been a better acquisition. Infrastructure that directly delivers content to customers that circumvents the cable companies. Hulu would be another waste of money.. I say they should look into buying Dish Network now that AT&T has bought DirecTV

      1. Directv ‘s annual profit last year was 2.9 billion with a 9% margin. This is a company that has actual customers, that can help Apple’s AppleTV and other services with content all around. Apple would be wise get it’s own content delivery service, one already making real money with real customers. WTF Beats offers, I do not know, but certainly not worth 3 billion.

        1. Yeah, I don’t know WTF Beats offers either. Foul mouth rap is not exactly Disney clean. Agree Dish network acquisition makes sense and grow from there.

  4. What the heck? “streaming video — an area Apple wants to get into?” What does he think Apple has been doing with Apple TV? Bizzarro article and author too….

  5. “If the owners of Hulu make moves to go full on boar with the platform, they could put serious hurt on Netflix.”

    Pendola writes, “The owners of Hulu might actually be able to execute a Hulu grand plan using Apple as a conduit, however the question is… is this — streaming video — an area Apple wants to get into?”

    The owners of Hulu don’t want to do the platform correctly. They want commercials even though you are paying for the service. They want to offer partial seasons. They want to basically thwart consumers from even considering Hulu. This isn’t a case of them not wanting to do it 100%, it’s that their 100% is the wrong model to succeed.

  6. Why would Apple acquire a US-only service whose rights wouldn’t transfer? Is Hulu’s technology years ahead of its competitors? Should Apple acquire NowTV, SkyGo, BlinkBox, Wuaki.tv, Knowhow Movies, Clubcard TV, Virgin Anywhere, Netflix, BBC iPlayer, ITV Player, 4od, Demand Five and TVCatchup? Of course not.

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