Disney acquires stake in Hulu

Disney has acquired almost a 30% stake in US online TV platform Hulu, the joint venture between NBC Universal and News Corp.

The deal will see Disney broadcast full-length episodes of its ABC TV programmes, such as Lost, Grey’s Anatomy, Ugly Betty and Desperate Housewives on Hulu.

Financial terms of the deal were not disclosed but all Disney content is expected to be free and ad-supported, according to reports.

Disney is joining News Corp and NBC Universal, as well as the private equity company Providence, as an equal equity partner in the venture.

As part of the deal, three members of The Walt Disney Company will join the Hulu board of directors, including president and CEO Robert Iger, president of Disney/ABC Television Group Anne Sweeney and executive VP Kevin Mayer.

Iger said: “From our landmark iTunes deal to our pioneering decision to stream ad supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today’s Hulu announcement is the next important step in that ongoing journey.”

Jason Kilar, CEO of Hulu, added: “We continue to aspire to deliver a service that users, advertisers and content owners unabashedly love.”

Hulu is currently only available in North America but has always been expected to expand internationally, particularly in the UK and other parts of Europe (see Should Hulu launch in the UK?).

The online TV platform offers programmes such as The Simpsons and The Office, and has US distribution deals with Dailymotion, MSN and Yahoo.

In March, the Digital Rights Group (DRG) signed a deal with Hulu to become the first British distributor to work with the service (see Digital Rights Group signs content deal with Hulu).

The deal gives Hulu access to DRG’s C4i and Portman catalogues, which includes shows such as Green Wing, Peep Show, Rude Tube and Traffik, for free.