# Hulu owners Fox and Disney/ABC plan "skinny bundle" for early 2017



## phrelin (Jan 18, 2007)

In a_ Wall Street Journal_ article Sunday the world learned *Hulu Is Developing a Cable-Style Online TV Service*:



> Until now, Hulu has offered on-demand programming from major networks, similar to Netflix Inc. The company hopes to launch the new cable TV-style online service in the first quarter of 2017, the people said. Walt Disney Co. and 21st Century Fox, which are co-owners of Hulu, are near agreements to license many of their channels for the platform.
> 
> Disney's ABC, ESPN and Disney Channel are expected to be available on the service along with the Fox broadcast network, Fox News, FX and Fox's national and regional sports channels. Preliminary conversations with other programmers have begun, but the service isn't looking to offer all the hundreds of channels found in the traditional cable bundle, according to the people familiar with the plans.
> 
> Comcast Corp. 's NBCUniversal is also an owner in Hulu, but so far hasn't agreed to license its networks for the planned digital pay-TV service, the people said.


Since this was a "people familiar with the plans said" report it caught the usual "biz related" outlets by surprise. They are catching up this morning.

*Are Disney And Fox Ready To Use Hulu To Declare War On Cable TV?* from _Deadline Hollywood_ is reporting this morning:



> The entertainment powers are working on terms to license services including ABC, ESPN, Disney Channel, Fox, Fox News, FX and Fox-owned sports channels to a Hulu service that might launch early next year. Comcast's NBCUniversal also is actively negotiating to provide some of its channels.
> 
> Along with the live stream, a new Hulu service reportedly would include a cloud-based digital video recorder and targeted ads. Hulu currently offers delayed VOD viewing of network shows, as well as other library and original content.
> 
> Although the service might encourage cord cutting, Comcast can't veto the plan. It relinquished its vote on Hulu matters until 2018 as part of the deal it made with the Justice Department in 2011 to keep antitrust officials from suing to block its acquisition of NBCU.


And *Hulu Reportedly Plans to Get Into Skinny Bundle Business With Fox, Disney* from _Advertising Age_, which reports from the advertising industry viewpoint, noted:



> Hulu plans to differentiate itself from those services with its reservoir of on-demand programming, one of the people said, as well as a user interface that would offer viewers a more personalized experience. The service said last year it had nine million subscribers.
> 
> By taking Hulu into live TV, Disney and Fox would be competing directly with distributors like AT&T and Charter Communications.
> 
> Hulu may discuss the service at a presentation in New York this week, when company executives unveil the service's upcoming slate of original programming and licensed series from other programmers. Hulu has increased its spending on its own shows in recent years to bring in new users, much like Netflix.


While some have described this as a "skinny bundle" the only reason it has to be "skinny" is that not all players will be available to Hulu.

What's not mentioned in any of these articles is the national broadcast network competitive reality that CBS new "Star Trek" series is slated to premiere in January 2017 with a preview broadcast on CBS followed by an exclusive run in the U.S. on CBS All Access.

With this announcement, it is clear to me that by May 2017 almost everything will be available via the internet when we likely will "cut the cord" after 28+ years of satellite TV beginning with an Echostar C-band tuner and continuing with Dish through now with a "small dish" Hopper/Joey setup. It's a brave new world of home video entertainment.


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## Wilf (Oct 15, 2008)

We just finished cutting the cord - we had been on the Welcome pack for a few years, but not watching, so it was time. Feels good to be rid of commercial infested TV.


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## phrelin (Jan 18, 2007)

At its "upfront presentation" yesterday Hulu's CEO confirmed their plans for internet bundling as noted in a *Deadline Hollywood report*:



> Hulu CEO Mike Hopkins this morning confirmed plans to offer a "skinny bundle" of offerings that will include real-time delivery of broadcast and pay TV network channels that won't require a cable connection. The service will be offered sometime in the next year; no price was mentioned, but reports have pegged the fee at $40 per month. With Hulu owners Disney and Fox, along with silent partner Comcast, the prospects look good for a major upgrade for cord-cutters resulting in what Hopkins described as a "deeply personalized experience." More than 70% of Hulu subscribers watch at home. "We've literally put TV back in the TV," Hopkins said.
> 
> As further inducement to the crowd, Hopkins said that while Hulu offered an ad-free option, "the vast vast majority of viewers" stay with the ad-supported plan, preferring "live, linear TV content."
> 
> Hopkins made the announcement at Hulu's upfront presentation to advertisers at The Theatre at Madison Square Garden. Among the other items on the list were a deal with concert monolith Live Nation that will allow Hulu to live stream concerts to subscribers, who, Hopkins said, have increased 33% in the last year to 12 million. And in another effort to induce advertisers to sign on, Hulu introduced a deal with BrightLine to create more interactive ads.


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An "upfront" is where the company sells ads, so I don't know if his emphasis on advertising was because of the audience he was addressing or reflecting Hulu company goals.

On the surface it would seem that emphasizing that "the vast vast majority of viewers" stay with the ad-supported plan is contrary information to the thread I started today Advertising is less than 50% of our business - Les Moonves, CBS.

But Hulu has from its beginning as an internet service was created to carry a lot of ABC/Disney, Fox and NBCU broadcast and cable content and only recently became a content producer.

CBS is still evolving its CBS All Access internet service and Moonves was talking about international sales as CBS is an international content producer.

It's interesting to watch the TV business evolve, though I would do anything to avoid commercials.


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