Update: Apple Considering a Bid for Hulu Video Service

  • In the latest installment of the ongoing Hulu saga, Bloomberg reports Apple is “considering making a bid” for the online video service.
  • Apple would join Google, Yahoo, AT&T and others who have expressed interest (Microsoft has reportedly dropped out of the bidding).
  • With $76 billion in cash and securities, an expected $2 billion bid would not be too difficult for Apple. If so, analysts suggest this would give Apple a leading subscription service that would rival, if not surpass, the Netflix service.
  • “Part of the ecosystem of Apple’s future is to include more video,” said Scott Sutherland, Wedbush Securities analyst (who recommends buying the stock). “It’s something they are focused on.”

Update: Microsoft Drops Out of Auction for Hulu Service

  • Microsoft has reportedly dropped out of the bidding for Hulu and would not continue into a second round, according to “a person with knowledge of the matter.” (Although the individual did not rule out the possibility of Microsoft re-entering in a later round.)
  • Google, Yahoo, AT&T and as many as eight other companies remain interested in the online video service.
  • According to Business Insider, Yahoo is willing to spend up to $2 billion if it can get content rights for the next four or five years.
  • It has been reported that Hulu plans to offer five years of access to content from its media company owners (Disney, News Corp. and Comcast’s NBC Universal), including two years of exclusivity.

Insiders Say Netflix Not Interested in Acquiring Hulu

  • Netflix is reportedly not among the handful of companies currently considering a purchase of Hulu.
  • Sources “familiar with the matter” indicate Netflix was absent from the first round of bidding presentations that concluded last week.
  • The same sources also suggest that Hulu has no interest in seeing its biggest rival take it over.
  • Google, Microsoft, Amazon and Yahoo are reportedly still among the companies interested in the TV streaming service.

Google Continues to Push its Social Networking Efforts

  • Eric Schmidt, executive chairman and former CEO of Google, says his company is continuing to experience strong demand for invitations to the new social network, Google+.
  • As previously reported on ETCentric, the network allows people to share links and media with others they have divided into “circles” of relationships.
  • If demand continues, Google will be looking at applying the social “circles” relationships to its search functionality and YouTube.
  • On Hulu, which Google is rumored to be bidding for, Schmidt explained that if there were any sort of deal, Hulu’s current TV shows would complement, not replace, YouTube’s online-only content.

MediaMall PlayLater Serves as DVR for Online Video

  • MediaMall, the group behind the popular PlayOn media software, announced this week a closed beta of an online service that allows users to record online video for later viewing (including offline).
  • PlayLater works similarly to a DVR, allowing “recording” of online video from sites such as Hulu, Netflix, Amazon and major networks.
  • Early reporting suggests playback of DRM protected files only on approved programs running on PC (using Windows Media Player), Android, iOS, Google TV, game systems, etc.
  • PlayLater is expected to eventually be available for $5/month, or $50/year.
  • CrunchGear reports: “Believe it or not, the term DVR is actually appropriate here. I’ve used the service and it actually records the programming and wraps the video file in a DRM-laced .plv container that’s only playable on approved programs.”

Yahoo Study: More People Watching Online Video During Primetime

  • According to a new study by Yahoo, people are watching more and longer videos during primetime.
  • Back in 2009, online viewing declined as more people watched video on their TVs.
  • More consumers are watching Netflix and Hulu during primetime, but short clips still comprise 74 percent of video viewed.
  • Viewers are more likely (57 percent) to watch video when presented with a related article.

Multiplatform News: Google Acquires SageTV

  • Google announced it has acquired Inglewood, California-based SageTV and the company’s multiplatform DVR technology.
  • SageTV integrates broadcast, Internet, Netflix and Hulu via its Home Theater PC (HTPC) software.
  • SageTV Placeshifter enables users to view TV from any high-speed Internet connection, similar to Slingbox.
  • Although details have yet to be announced, we may see SageTV functionality incorporated into Google TV.
  • From the SageTV site: “We’ve seen how Google’s developer efforts are designed to stimulate innovation across the web, and as developers have played a core role in the success of SageTV, we think our shared vision for open technology will help us advance the online entertainment experience.”
  • The Engadget post features the SageTV press release and a 4-minute video (created by user jaredduq).

Average YouTube Viewer Watches 5 Hours of Videos per Month

  • According to comScore’s May 2011 online video rankings, the average U.S. Internet user watched almost 16 hours of video last month.
  • The report indicates the total U.S. audience engaged in more than 5.6 billion viewing sessions during May, while 83.3 percent viewed online video.
  • Not surprisingly, Google’s YouTube was was the leading video site (again) with 147.2 million unique viewers, and an average of five hours spent per viewer on the site.
  • VEVO followed YouTube with 60.4 million viewers, Yahoo had 55.5 million viewers, and Facebook took the fourth spot with 48.2 million viewers.
  • Hulu had the highest number of video ad impressions at more than 1.3 billion.
  • The average length of online video content was 5.2 minutes.

Hulu Plus Now Available on TiVo Premiere DVRs, Xbox 360 and PlayStation 3

Hulu Plus has announced its latest service integration, this time with the Tivo Premiere set-top box. According to the Hulu Blog, to celebrate the launch, “TiVo is offering a 6-month free trial to those who purchase a TiVo Premiere from a retailer or Tivo.com. This offer runs until August 30, 2011. And TiVo subscribers who already subscribe to Hulu Plus can begin accessing their account with no additional charges.”

The TiVo integration is the latest in a growing list of Hulu expansion efforts. At the end of April, Microsoft added the Hulu Plus service to its Xbox 360 gaming console (only for Xbox Live Gold members who pay the $60 yearly subscription fee in addition to the monthly Hulu Plus subscription). A Sony PS3 app for Hulu Plus was made available late last year via the PlayStation Network. Hulu also announced net-connected Sony Bravia TVs and Blu-ray players, Roku boxes and Vizio TVs.

PC World reports that current TiVo Premiere customers can register for a free one-month trial before starting the Hulu Plus subscription (while new customers who purchase the TiVo Premiere box will get six months free). Additionally, TiVo subscribers “have to sign up for the $7.95-a-month Hulu Plus service in order to stream to their TVs (Hulu requires a subscription to Hulu Plus for any non-computer streaming).”

In related news, ReelSEO reports that Hulu now accounts for a quarter of online video ads. According to recent comScore numbers, 172 million Americans consumed an average of 14.9 hours each of online video content in April. Google is the clear leader in this regard with nearly three times as many viewers as second place VEVO. While Hulu is only tenth on the list of total online viewers, it is interesting to note it falls second to Google in the average number of minutes people spend on the site. The comScore data indicates Hulu dominates in advertising, accounting for 1.14 million ads in April.

Related Hulu Blog post (and video): “Hulu Plus Now Available on TiVo Premiere” (5/23/11)

Related Wired article: “Hands-On: Hulu Plus for Xbox 360 Is Just as Unfinished as Netflix Offering” (4/28/11)

Related ReelSEO article: “Online Video Numbers Hold Steady for April, Except at AOL” (5/22/11)

Apple may Offer Streaming Video to Devices via AirPlay

Apple is considering adding streaming video to its AirPlay service, which currently allows users to stream audio from an iPhone, iPad or iTunes to a home stereo or other devices. According to Bloomberg, two people familiar with the matter (who asked to remain anonymous) suggested the new feature would enable streaming video from an iPhone or iPad to television sets — and that Apple would license its software to CE manufacturers who could potentially use AirPlay in their devices for streaming movies, television and other video content.

Expanding AirPlay functionality could possibly spark more use of Apple devices and services in the home, despite the company’s limited success selling the $99 Apple TV set-top box thus far. Bloomberg reports that, “For Apple, AirPlay is a way to expand into the living room without having to introduce new products.”

While Apple and others such as Google are looking to explore the possibilities of streaming video and Web-connected televisions, a challenge for streaming content from a mobile device involves bandwidth issues and whether signals can be carried without interruption. Regardless of any technical obstacles, there is clearly a shift in how consumers are accessing TV shows and movies, with an increasing number of people accessing instant streaming services from the likes of Netflix and Hulu. Apple’s Steve Jobs — banking on a complete shift from physical media toward content distribution in digital form — has gone so far as barring Blu-ray players from Mac computers.

Hulu Examines its Business Model: Online Cable Operator?

Internet TV pioneer Hulu is reportedly in discussions to transform its business model. Since its 2008 launch, Hulu has been one of the leaders in free online television delivery and web-video ad dollars.

The Wall Street Journal reports that Hulu’s three owners (NBC Universal, News Corp. and Disney) are concerned that free Web versions of their TV shows are cutting into their traditional business, and the three are at odds regarding how much of their content should be offered for free.

News Corp.’s Fox Broadcasting and Disney’s ABC are considering pulling some of their free content from Hulu (and selling more content to Hulu competitors), while Hulu management is discussing the idea of retooling Hulu as an online cable operator that would use the Web to provide live TV channels and video-on-demand content to customers. If they opt to move forward with such a plan, some form of Hulu’s free service would likely remain and it is possible Hulu Plus could be folded into the new service.