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Ad dispute stalls Hulu’s UK launch
The UK launch of video-streaming site Hulu has reportedly stalled due to a dispute with Channel 4 and ITV over who gets to sell ads on the UK broadcasters’ content. Hulu is said to be demanding the right to sell ads on almost all content on its UK platform, including programmes owned by Channel 4 and ITV.
According to reports, the UK broadcasters want more control over the ads that will appear around their content. Channel 4 in particular is buoyed up by a recent deal with Google that allows it to sell ads around Channel 4 content on YouTube. The deal was the first of its kind between YouTube and a UK broadcaster and promised to herald many ad-sharing partnerships between broadcasters and video-streaming sites.
The dispute comes at a time when Hulu is striving to expand its portfolio through content deals. It recently closed deals with Endemol and Digital Rights Group to bring UK programmes such as Green Wing and Peep Show to its US viewers. The firm hopes the deals will also bring it closer to launching in the UK, where viewers will expect to see a range of domestic content as well as US shows that Hulu already screens.
The dispute with Channel 4 and ITV is not thought to have scuppered talks, says Brand Republic, as both parties are still keen to make a deal. However, it seems likely that Hulu will have to give both channels more control over ad sales if it is to bring them on board. Both Channel 4 and ITV are fighting for survival amid some of the toughest conditions UK free-to-air broadcasters have ever faced. They are desperate to squeeze every last penny from their precious content.
Hulu has made large concessions in the pursuit of premium content before. The firm recently gave up a 30% equity stake in the company to Disney, in exchange for the right to screen content from Disney and ABC for the first time. Some analysts claimed the deal showed the increased power of TV networks in the online video space. If those analysts are right, the owners of premium content are in an enviable position, and Channel 4 and ITV can afford to bargain for more control over ad sales and revenues.
