Comcast buys Hulu. (The Hulu Brief)

On Friday, December 11, 2009
I set out to try to answer some questions. Why would Comcast buy NBC? Why do we pay for cable? Why Hulu works? Why are other companies scared of Hulu?

In my attempt to answer some of these questions I came across a fictional story that took place in a Comcast board room somewhere in Dubai. (Because I think that's the perfect place for this fictional story)

Arthur the CEO and David the director of Northern operations are having a talk about a ski trip they went on when David asks Arthur if he has checked out the latest episode of "The Office". Arthur states he missed it.. David mentions that he can just watch it on Hulu.com.
Silence....... [bxA]
Arthur asks David "Do you know why people pay for Cable? Do you know why we have this business? Do you? Do you understand that the reason that we have succeeded is that we provide a service to people that they can't get otherwise. We provide them television from all over that couldn't be provided otherwise. We provide a backbone for broadcasting companies to deliver content anywhere when they can not afford the infrastructure. Our business was built off of that. It's how we survived. We charge for content that you could otherwise get free because we have the infrastructure. Along came Satellite TV and we had our first real competition. But in a way we had a one up on that competition. We had infrastructure that was pre-existing and that still worked during heavy down pore. Now you bring this in here? To my boardroom? Do you know why Hulu is so bad for us? Do you? Do you know why Hulu is causing me to loose sleep every night? Why I have heartburn? Why my ulsers are inflamed? I will tell you why. Because they provide what we provide. Content? Content from anywhere? The ability to provide content not only from anywhere.. using OUR infrastructure... what we have built, but content for FREE and content on demand, anytime.. anywhere. It will cost them almost nothing to provide and the infrastructure is already in place. Why would people pay for Cable when they will be able to get the same thing for Free, anytime and anywhere? They are the nightmare that keeps me from my good nights sleep.
So...I have a plan. Since our TV Anywhere program is not going to be enough. It's a battle we are going to loose. So here is what we are going to do. Without admitting defeat.. we are going to make a purchase. This purchase is going to cost us a fortune but will insure our future in broadcasting. We are going to buy NBC!" "Excuse me? " asked David. "Oh you heard me right!" exclaims Arthur. "If we are going to succeed there is no other way. We will claim that the venture is exactly what makes the perfect company. The combination of a great Broadcast company and the perfect cable company. People will never see the truth until it is too late.. all this... all the money we are spending is just so we can get a piece of HULU."





Handango Inc.


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