Bloomberg: Labels In Talks With Hulu.com
April 23, 2009 at 5:11 AM (PT)
HULU.COM, the website that hosts prime-time TV shows, is in talks with the world’s largest record labels to offer music videos in competition with GOOGLE’s YOUTUBE, four people with knowledge of the discussions told BLOOMBERG NEWS, which reports EMI GROUP LTD., WARNER MUSIC GROUP CORP., UNIVERSAL MUSIC GROUP AND SONY MUSIC ENTERTAINMENT are negotiating to add music videos to HULU, said the people, who declined to be identified because talks are private.
"HULU, whose owners include NBC UNIVERSAL and NEWS CORP., plans to compete with VEVO.COM, the music service planned by UNIVERSAL MUSIC GROUP and YOUTUBE, the dominant video website. SONY, EMI and WARNER MUSIC are being asked to join VEVO.COM, YOUTUBE and UNIVERSAL MUSIC said on APRIL 9th.
"HULU will add more content this year than in 2008, CEO JASON KILAR said TODAY at a conference in SAN FRANCISCO. He wasn’t available to comment further, a HULU spokeswoman said.
"All four record labels have been in discussions with HULU throughout this year, and the sides haven’t been able to agree how to split advertising revenue, two of the sources said. HULU isn’t offering music companies ownership in the website, those people said. WALT DISNEY CO. is in discussions to purchase a stake in HULU alongside NBC UNIVERSAL, a GENERAL ELECTRIC CO. unit, and NEWS CORP.’s FOX, two people with knowledge of the plans said on MARCH 30th.
"UNIVERSAL MUSIC CEO DOUG MORRIS and GOOGLE CEO ERIC SCHMIDT may offer stakes in VEVO.COM to SONY, EMI and WARNER MUSIC, one of the people said.