Skip to main content

Yahoo going after Hulu's subscription revenue

With its 4 million subscribers paying $7.99 per month and $695 million in revenue in 2012, Hulu would be a quick financial booster for Yahoo compared to Tumblr.


Yahoo just spent $1.1 billion of its cash horde to acquire Tumblr, a blogging site with 300 million mostly young-ish visitors and 24 billion minutes of usage per month. Yahoo CEO Marissa Mayer's team can slap a lot of tasteful, personalized native ads into the Tumblr content streams to monetize the fast growing site. It's the same way that Facebook and Twitter hope to get into the tens of billions in revenue league, but it's a long and winding road.
Now Yahoo is taking a run at Hulu, with its 4 million subscribers paying $7.99 per month, original programming , and more than 70,000 full TV episodes. Hulu could immediately put Yahoo's video efforts and revenue in a different league.
The video site, currently owned by Disney, News Corp., and Comcast, generated $695 million in revenue in 2012 from ads and subscription fees, up from an estimated $420 million in the previous year. Yahoo had revenue of about $5 billion in 2012 from display and search advertising.
For comparison, Netflix has more than 29 million domestic streaming subscribers and had over $1 billion in revenue for its first quarter in 2013.
Hulu's 4 million subscribers, which doubled in the last year, would bring a Yahoo as growing recurring revenue stream and credit card accounts with subscribers who could be enticed to pay for other Yahoo services.
Video is an area that Yahoo has been building up over the last several years. The company has video content deals with ABC News, CNBC Conde Nast, NBC Sports and Wenner Media, in addition to orignal Web shows. According to comScore, Yahoo is among the top sites for video consumption.
(Credit: comScore)
Earlier this year, Yahoo tried to buy a majority stake in the site Dailymotion to boost its video presence in Europe and Asia but abandoned the attempt due to objections from the French government.
As reported by All Things D, Yahoo is offering between $600 and $800 million, depending on what content and licensing deals come with the acquisition. Yahoo is facing stiff competition for landing Hulu, including DirecTV, Time Warner Cable, and The Chernin Group and private equity players, Guggenheim Digital, KKR, and Silver Lake Partners.

Comments

Popular posts from this blog

Best tech gifts under $100 for Dad

Roku's speedy streamer is the best box yetThe good:The Roku 3's excellent new interface and faster processor makes it feel quicker and more responsive than any other streaming box. More than 750 channels are supported, including Netflix, Amazon Instant, HBO Go, Hulu Plus, Pandora, MLB.TV, Amazon Cloud Player, and Vudu. It also has cross-platform search that scours several major TV and movie services to find content. And Roku's nifty new remote has a built-in headphone jack that lets you listen without disturbing others. The bad:There's still no official YouTube channel. Some services have an outdated interface on Roku compared to other streamers. The Apple TV still works better within the Apple ecosystem. And the Roku 3 isn't a great option if you're mostly looking to stream your personal digital media collection. The bottom line:The Roku 3 is the best streaming-video box yet, with tons of content sources, lightning-fast performance, and an innovative remote wit…

'Star Trek II' producer talks Ceti Eel, J.J. Abrams, and more (Q&A)

Robert Sallin, producer of "Star Trek II: The Wrath of Khan," shares his experience working on the film, looks at the future of "Trek," and dishes on whether that was Ricardo Montalban's real chest.

The release of "Star Trek Into Darkness" has not only spurred interest in the "Trek" world in general, but especially in its film daddy, the original Khan-as-villain movie "Star Trek II: The Wrath of Khan." While the new film takes quite a few detours, it is full of homages to the earlier work. Let's look back to 1982. "Star Trek: The Motion Picture" had been released in 1979 and faced a poor critical reception. Paramount, the film's studio, was gun-shy after the movie nearly doubled its original budget, ending up with a $46 million price tag. Nonetheless, plans for a second movie plodded along. It's 30, 40 years later and we have new audiences. You can't keep dwelling on the old guys and the old things. It has…

Canon videos show off 70D's dual-pixel autofocus technology

It remains to be seen how well it works in the real world, but the new dual-pixel autofocus technology shows promise in Canon's promotional video about its latest SLR.


Canon wants to show off what its new EOS 70D camera can do when it comes to one persistent shortcoming in the digital photography revolution: autofocus. It's posted two videos -- a demonstration video called Handmade and a behind-the-scenes explanatory video about it -- designed to show what the new digital SLR can accomplish with its new Dual Pixel CMOS AF (DPA) technology. Check below to watch the videos. No doubt the autofocus technology won't work as smoothly in the real world as it does in these promotional videos with bright lighting, carefully arranged sets, and plenty of chances to shoot another take if things don't go right at first. But they're worth watching to at least get a flavor of what's possible and to see a reasonably broad selection of the 103 Canon lenses the company says DPA …