Disney Takes Equity Stake in Hulu

Written by Steve Donohue

Thursday, April 30. 2009 at 12:45 PM EDT 2 comments

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Lost, Desparate Housewives, and other top programs from ABC will soon be available on Hulu after Walt Disney Co. agreed to join NBC Universal, News Corp., and Providence Equity Partners as an equity owner in the online video joint venture.

The deal, announced this morning, leaves CBS as the only Big Four broadcast network not distributing programming on Hulu. CBS distributes prime-time series on CBS.com and TV.com, which it picked up last year through its acquisition of CNET Networks.

It was rumored for weeks that Disney was talking to Hulu's owners about taking a stake in the company. The media giant will get three seats on the Hulu board, which will be held by Disney president Bob Iger, Disney/ABC Television Group president Anne Sweeney, and Disney executive vice president of corporate strategy and business development Kevin Mayer.

While ABC currently uses a video player from Move Networks Inc. to distribute programming on ABC.com, a source said all ABC and Disney shows that will be distributed on Hulu will use Adobe Systems Inc. (Nasdaq: ADBE)'s Flash Player, which Hulu uses for all of its videos.

Once the deal closes, Disney will supply programming from ABC and cable networks ABC Family, Disney Channel, and SOAPnet to Hulu. Disney will also supply movies from Walt Disney Studios to Hulu.

No content from ESPN, Disney's most profitable cable channel, will be available on Hulu. ESPN distributes short video clips on ESPN.com and distributes live sports videos on ESPN360, a premium Website that it markets through cable TV operators.

Prime-time shows from ABC that will be added to Hulu include Lost, Grey's Anatomy, Desperate Housewives, Ugly Betty, Samantha Who?, Scrubs, Private Practice, and late night talk show Jimmy Kimmel Live. ABC Family will supply The Secret Life of the American Teenager and Greek, while SOAPnet will contribute General Hospital, The View, and other daytime series.

Disney Channel will distribute Wizards of Waverly Place and Phineas and Ferb on Hulu, and ABC said it will also supply classic programs from its library, including Hope and Faith, Less Than Perfect, Commander in Chief, Who Wants To Be A Millionaire, and Dancing with the Stars.