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Hulu Reaches Tentative Deal for Renewed Disney Show Rights -- and More Ads

Site Is Considering Options After Being Approached About a Sale

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Hulu, the online video site considering a sale, reached a tentative agreement for renewed rights to television shows from its part-owner, Walt Disney Co., according to two people with knowledge of the situation.

The agreement with Disney, which operates the ABC broadcast network, is similar to Hulu's new arrangement with another co-owner, Fox parent News Corp., said the people, who weren't authorized to speak publicly. The News Corp.-Hulu renewal was reported by Variety this week.

The pacts will bring more ads to current shows seen on Hulu, including "Modern Family," which airs on ABC, and Fox's "Family Guy," the people said. Hulu Chief Executive Officer Jason Kilar said in a February blog post that the site, with fewer ads than traditional TV, is a more effective marketing medium.

The deals may be signed within weeks, the people said.

A "Modern Family" episode on Hulu includes about 2.5 minutes of ads. On a broadcast network, commercial time totals about 8 minutes per half hour.

Elisa Schreiber, a spokeswoman for Los Angeles-based Hulu, declined to comment. Zenia Mucha, a spokeswoman for Burbank, Calif.-based Disney, didn't respond to requests for comment.

Hulu, whose owners also include Comcast's NBC and Providence Equity Partners, was approached by a potential buyer and is weighing its options, a person with knowledge of the situation said this week.

-- Bloomberg News --

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