Though Google and Amazon each already have a foot in the online video door, one could soon step through it. The two companies are eying up a possible Hulu acquisition in the near-future, said Eric Wold, analyst at Merriman Capital. What would such a move mean for Google's YouTube or Amazon's Instant Video?
Entertainment industry news outlet Home Media Magazine cited Wold's memo which speculated Hulu could sell for as much as $2 billion. A low-ball figure Wold threw out was $500 million - or around $200 million more than what Dish Network paid for bankrupt rental company Blockbuster earlier this year. Though the analyst didn't pick a horse, he believes "a potential battle" may erupt between the online juggernauts as other bidders bow out. Wold did say that Amazon arguably has the most to gain from acquiring Hulu.
"With just about all of Amazon's streaming content for its Prime subscribers also found on Netflix, we believe that acquiring Hulu would definitely bring its digital offering to a new level," he explained.
Amazon Prime is a $79 per year subscription that grants customers free two-day shipping on all purchases. In February, free unlimited streaming was added to the package. The company announced last week that 100,000 shows and movies are now available for rental and purchase through its Instant Video service, but only 9,000 are freely available for paying Prime members. Impressive, but still lacking when measured against Netflix's roster.
Following the announcement that Hulu was up for sale (which wasn't really too much of an announcement), some speculated that Yahoo and Microsoft would place bids on the streaming company. And while that remains a possibility, Wold cited Google and Amazon's "more established presence in the digital streaming space" as a factor that justifies their interest. Another analyst speculated that Apple could also throw its hat into the ring with a big bid. However, recent rumors suggest the company is now gearing up for its own full-fledged video on-demand service called Replay.
Whomever it is, Hulu's new owner may be announced soon: initial bids will be filed on Wednesday, said Wold. That's when things get interesting. (via Home Media Magazine)
Who do you think will snatch up Hulu? Let us know in the comment section.
