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These competitors are teaming up to offer consumers easy access to a huge range of content when and where they want it. And it's a testament to how important digital revenues are to media giants' bottom lines. It's rare to see this kind of collaboration, which validates Hulu's growth. It's one of the top video sites on the web, with a growing number of content partners and distribution to 35 other sites, including AOL and MSN. While online advertising growth is slowing dramatically, Hulu has the benefit of professionally-created content with a built-in audience. And the fact that advertisers have to compete and pay top dollar for a spot on ABC's shows like "Gray's Anatomy" means spots on Hulu.com are likely to also be worth something.
Disney will continue to run many of the same shows on ABC.com, which has its own video player, and its other websites. And it will continue to sell episodes on iTunes, where it was the first media company to offer first-run shows online. Disney calls itself platform agnostic, it just wants to get its content out to viewers in as many ways as possible, and collect those additional ad revenues.
It's a big deal to have what's effectively three quarters of primetime programming in one place; rival CBS [CBS
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] distributes through its TV.com. It's too bad the entire network lineup can't be at a single destination - if it ever is, it would be incredibly convenient for viewers.
And then, the nets might be able to jack up their online ad prices.
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