Disney has suddenly become a key member of the battle for viewers raging between Hulu and YouTube, by doing deals with both. While YouTube is confirmed to be getting short-form Disney content, the as-yet-unconfirmed Hulu deal is about long-form content and partnership.
There’s a war brewing, with Hulu on one side and YouTube on the other. At the moment, the sides are not exactly matched, with one offering mostly user-generated content and the other offering premium programming. But as YouTube looks set to redesign in order to better serve episodic content, the battle lines are being drawn.
Disney has decided to send its troops into battle, but has rather bizarrely chosen to fight for both sides.
Disney Loves YouTube
After being rumored for a few days, Disney Media Networks has announced a deal with YouTube which will see short-form clips appearing on the online video site shortly. Disney will launch various channels on YouTube featuring content from ESPN and ABC. Unfortunately for us Non-U.S. residents, we will once again be shut out of viewing.
The deal is thought to include a clause where Disney will “have the option to sell their own advertising inventory” on the channels, with support from YouTube at the beginning. In effect, it looks as though Disney is holding all the cards on this one and could make a mint from pre-roll adverts before its own video clips. All that YouTube would gain would be traffic and kudos.
Disney Loves Hulu
Meanwhile, discussions between Disney and Hulu are still ongoing, although Silicon Alley Insider claims the deal is “basically done.” PaidContent goes into more detail on the deal, which is thought would see Disney coming in as an equal-third partner with NBC Universal and News Corp.
If true, Disney would get a 30 percent share in the company and in return would agree to spend $50 million marketing the site. The other 10 percent is held by Providence Equity Partners, and that’s staying where it is.
Poor Old CBS
This deal would be an important step toward Hulu becoming the only premium content portal most people would need. With NBC, News Corps., and ABC involved, it would leave CBS as the only major American television network not providing content.
An interesting side point noted by VentureBeat is that Steve Jobs of Apple is Disney’s largest shareholder. At some point in the not-too-distant future, Hulu and Apple are going to come to blows to determine which model is best-suited to making money from television content. Hulu is free but runs ads while iTunes charges cold hard cash with no ads being the sweetener.
Whatever happens, it looks as though Disney is embracing online video, and how. In a matter of months we could see Disney content on the two most important video portals in the world. Which has got to be a good thing.
