HULU STRIKES CONTENT DEAL WITH FOX AND DISNEY, NBC IN TALKS

Now that Hulu's owners have apparently decided the best thing to do is sell it to someone else, long arrangements for content are needed to bring the highest price. Bloomberg is reporting that after cutting a deal with Fox a few days ago Hulu has now tentatively reached a deal with another of its owners, Disney. While both arrangements could keep the TV shows flowing, they also reportedly include provisions to increase the number of ads shown on the service. That would also put it in position to reach a similar agreement with Comcast-owned NBCUniversal, because of the media giant's FCC promise to reach similar agreements as its competitors for online content.

HULU CONFIRMS IT IS FOR SALE

Hulu has hired bankers Morgan Stanley and Guggenheim Partners to sell the online video site. Hulu is jointly owned by News Corp's Fox, Disney's ABC and Comcast's NBC (although NBC has no voting power or a seat on the board). Hulu has stated it is on track to generate over $500 million in revenue this year, making it a quite attractive property.

Earlier this week it was rumored Yahoo was interested in Hulu and had tendered an initial offer. No news on if that offer was considered, but the board has not met to discuss any offers, so it is doubtful Yahoo's offer was sufficient.

Last year, Hulu and Morgan Stanley floated the notion of an IPO, which went nowhere because the company couldn’t secure long-term exclusive content licenses from its owners.

DISNEY BUYS TOGETHERVILLE, GETS INTO SOCIAL NETWORKING FOR KIDS

Disney has just acquired Togetherville, a social network for kids 10 years of age or younger, we’ve confirmed with the company. Togetherville, which exited beta last year, mimics the experience of adult social networking sites, i.e. Facebook but in an age-appropriate and parent-monitored environment. Togetherville promises a safer, more secure environment, where parents can moderate who their children are connecting with. Parents approve each of their child’s friends, and can also connect with other parents using Facebook’s social graph.

Terms of the acquisition are not being disclosed.

TIME WARNER, DISNEY AND NEWS CORP CHIME IN ON COMCAST/NBC MERGER

As Comcast, NBC and the FCC attempt to work out stipulations over Comcast's proposed 51 percent buyout of NBC Universal, a smattering of major media companies are paying close attention to the play-by-play. Naturally, the precedents that are set from this deal will affect future agreements of this caliber, and lobbyists for both Disney and News Corp. (as well as Time Warner CEO Jeff Bewkes) aren't standing over on the sidelines any longer. All three outfits have reportedly been "voicing their concerns this week with the FCC, worried that such conditions could undermine their own efforts to profit from the nascent online video industry."

We're told that the media mega-corps are worried that the rules -- if hammered down -- could interfere with ongoing negotiations with online video providers, and in turn, give them less leverage to monetize and control their content on the world wide web. In other words, if NBC Universal is forced to provide content fluidly to all ISPs (and not just Comcast), what's to say other content makers and internet providers wouldn't also be forced into similar deals, regardless of whether or not they're involved in takeover negotiations? Needless to say, we're nowhere near the end of this journey, and while the nuts and bolts are pretty dry to think about, the outcomes could have a serious impact on our future viewing habits.

YAHOO TVs TO STREAM DISNEY, ABC, ESPN WIDGETS

If you own a Yahoo Connected TV you could soon be getting widgets to stream ESPN, ABC and Disney shows. These widgets will reportedly be free, however CBS, NBC, Showtime and Home Shopping Network widgets may be paid apps. Yahoo is expected launch a paid app store in Q1.

Yahoo Connected TV was launched a few years ago and has failed to take off like the set top box, Apple, Google and Boxee for example. Yahoo Connected currently has about 100 free apps in their download store.

NETFLIX SIGNS DISNEY-ABC DEAL

Netflix announced today that they have brokered a deal with Disney-ABC to add their content to the Netflix library. The deal should add a substantial number of new TV shows and Movies to instant watch. The episodes will be added rather quickly to instant watch only 15 days after initial telecast. Here is a list of the new additions to Netflix:

* Prior season episodes of current ABC hit series "Grey's Anatomy," "Desperate Housewives" and, for the first time on Netflix, "Brothers & Sisters," all of which are among the network's most successful and popular TV franchises in recent years.
* Every episode of recent ABC favorites "Lost" and "Ugly Betty," the latter making its streaming debut at Netflix.
* Each season of several hit series from ABC Studios, including "Scrubs" and "Reaper," which are both new additions to Netflix.
* A host of content from the Disney Channel, including the hits "Phineas and Ferb" and "Good Luck Charlie," which are also new to Netflix; updated and expanded offerings of "The Suite Life on Deck" and "Wizards of Waverly Place;" and library offerings from the smash hits "Hannah Montana" and "The Suite Life of Zack & Cody."
* A wide range of content from ABC Family, marking the introduction of ABC Family content streaming from Netflix. Included are the hit series "Greek," "Make It or Break It," "The Secret Life of the American Teenager" and "Melissa & Joey."" [Slashdot]

RUMOR: STUDIOS IN TALKS TO OFFER STREAMING MOVIES

Bloomberg is reporting that Disney, Warner Bros. and Sony are in talks with In Demand to offer movies "soon after their theater runs" via a streaming option.  They will offer the movies for $30.  Disney is looking to stream movies through the Xbox 360 and Playstation3 as well.

This is not the first time a studio has tested this method.  Sony tried it twice before with Hancock and Cloudy with a Chance of Meatballs.  They charged $25 for those movies. Would anyone pay that kind of money to watch a movie early? [Gizmodo]

APPLE TV RENTALS TO CHEAP FOR CONTENT OWNERS?

Warner Bros. Entertainment Chairman Barry Meyer told attendees of the very long named Bank of America / Merrill Lynch 2010 Media, Communications & Entertainment Conference that his company doesn't see a good value proposition in the TV show rental sector.  He went on to say  he doesn't want to "open up a rental business in television at a low price.”   This is probably due to the fact he doesn't want to cannibalize the licensing of entire seasons of shows to other broadcasters.

Currently, Apple only has Disney and News Corp signed for the launch of Apple TV.  CBS and NBC are waiting on the sidelines to see how things progress before jumping in. [NewTeeVee]

RUMOR: APPLE READYING 99 CENT TV SHOW RENTAL

Apple is working on bringing 99 cent TV show rentals to iTunes according to Bloomberg's report.  They have nearly locked in Fox with CBS and Disney not far behind.  Apple is in advanced talks with Fox to allow rental of their TV shows for 48 hours for 99 cents.