Hulu primping for $2 billion IPO

Streaming video service provider Hulu is reportedly planning an initial public offering that could value the company at more than $2 billion. Citing anonymous sources briefed on the matter, Hulu executives are in discussions with investment banks to launch an IPO as soon as this fall. Founded in March 2007 as a joint venture bringing together media giants News Corp., the Walt Disney Company and NBC Universal along with private equity firm Providence Equity Partners, Hulu offers commercial-supported film and television content, including hit primetime series from the ABC, NBC and Fox networks--in May, the firm reported 2009 advertising revenues of $100 million, adding it is on track to generate a comparable total within the first six months of 2010. Hulu has yet to comment on the rumored IPO.

Following months of speculation about its premium prospects, in late June Hulu finally confirmed plans to introduce Hulu Plus, an ad-supported subscription service priced at $9.99 per month. Promising content optimized for multiple web-connected devices including Apple's iPhone and iPad as well as PCs, Macs, PlayStation 3 and select Samsung Blu-ray players, Hulu Plus will spotlight programming including complete seasons of current primetime hits like Glee, The Office and Grey's Anatomy as well as multiple seasons of library titles like The X-Files and Arrested Development. According to Hulu, content will originate from more than 100 providers in all, spanning broadcast networks, major studios and independent creators--many programs will stream in 720p high definition, with select devices leveraging adaptive bitrate streaming to deliver the highest video quality for a given viewer's bandwidth.

Hulu plans to continue expanding the premium service to new devices and platforms in the months ahead, with Xbox 360 confirmed for early 2011. Its traditional free website will also remain up and running.

For more on the Hulu IPO:
- read this New York Times article

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