US online TV service Hulu is taking the first steps towards making content on its service only available to existing pay TV subscribers, according to a report in the New York Post.
According to the Post, citing unnamed sources, the move towards an authentication model – whereby viewers would have to log in with their cable or satellite pay TV account number – was a key factor behind Providence Equity Partners’ decision, reported last week but as-yet unconfirmed, to sell its 10% stake in the venture to its partners.
Disney, Comcast and News Corp, which also owns the Post, will reportedly buy Providence’s 10% share in the online catch-up and original programming service for about US$200 million (€150 million), valuing Hulu at about US$2 billion.
The Post also reports that News Corp-owned Fox is to begin talks with cable operator Comcast, also a shareholder in Hulu, on a TV Everywhere agreement that will also require user authentication, while Comcast-owned NBC Universal will require online viewers of the bulk of its coverage of the London Olympic Games to prove they are subscribers to a pay TV service.
