AT&T Inc. and Hulu signed a deal under which the telecom
company will be able to offer Hulu's subscription streaming service
to its customers through an AT&T website or mobile application
starting later this year.
The deal builds on AT&T's current contract with Hulu for its
free content. AT&T expects the expanded relationship with Hulu
will complement its other over-the-top efforts, such as its Otter
Media venture with the Chernin Group.
"We know that our customers want to be able to access video on
multiple devices," said Andrew Goodman, associate vice president,
AT&T content acquisition.
Hulu has been seeking tie-ups with pay-TV providers since the
latter half of 2013, after its media company owners decided not to
sell the company. Hulu is owned by Walt Disney Co., 21st Century
Fox Inc. and Comcast Corp. (Fox and The Wall Street Journal were
part of the same company until mid-2013.)
AT&T is in the process of acquiring satellite-television
provider DirecTV in a $49 billion deal that is expected to give
AT&T a differentiated offering when trying to win wireless
customers or sell large packages of telecom, Internet and video
services. The deal is expected to close in the current quarter.
AT&T and Hulu said Wednesday that they also are exploring
the possibility of bringing a Hulu app to television.
The deal comes a day after rival Verizon Communications Inc.
said it is buying AOL Inc. in a $4.4 billion deal aimed at
advancing the telecom company's growth ambitions in mobile video
and advertising.
Last month, Cablevision Systems Corp. reached a deal with Hulu
to offer the service's catalog of on-demand shows and movies to its
customers.
Write to Tess Stynes at tess.stynes@wsj.com
Access Investor Kit for AOL, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US00184X1054
Access Investor Kit for AT&T, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US00206R1023
Access Investor Kit for Comcast Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US20030N1019
Access Investor Kit for Comcast Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US20030N2009
Access Investor Kit for The Walt Disney Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2546871060
Access Investor Kit for DIRECTV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25490A3095
Access Investor Kit for 21st Century Fox, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US90130A1016
Access Investor Kit for 21st Century Fox, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US90130A2006
Access Investor Kit for Verizon Communications, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92343V1044
Subscribe to WSJ: http://online.wsj.com?mod=djnwires