Hulu Shows Content Is King in Media Merger Frenzy

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July 15 (Bloomberg) -- Bloomberg News media reporter Edmund Lee digs deeper into the non-deal for Hulu as its group of owners decides to hold on to the streaming video service. He speaks on Bloomberg Television's "Bloomberg Surveillance."

The hulu deal says it all, or the non-deal.

The content people said, go away.

They got all the bidders.

The bids went as high as $1 billion.

These are not multi-bids.

After a lot of back-and- forth, at sun valley, they decided -- what is the why?

Fundamentally, what we are told his they want to change the direction of hulu.

They did not wanted to be a free service as it is now with the paid option.

They want to move it towards what they call an authentication model which is, prove you pay for television, satellite or cable, and then you can watch it.

If you select one of the bidders, directv, if you select there, it is less chance that its competitors will go into that.

A lot of the bidders were at the sun valley media conference talking to our bloomberg west senior correspondent jon erlichman, bob geiger of walt disney.

He asked him about this decision.

Have a listen.

Throughout the process, we continue to give consideration to strategic value of hulu.

And to its potential in terms of investment value long-term.

The interests of news corp.

And disney galvanized during the process about that.

We concluded that even though we had some great compelling offers on the table, the future of hulu was bright.

The future of hulu was bright, and we should hold onto it.

It sounds like bob either was saying, we do not realize how much of a gem this really was.

The fact that there were not a lot of its -- bi ds, it was like, this is a pretty nice property.

The main reason is, these guys are traditional programming guys.

They want to preserve the pay-tv ecosystem, touches they do not want to disrupt table or satellite and any kind of way.

Hulu and netflix represent opposite models.

They are cheap cable channels.

When you say some of these guys, and that is part of the problem -- owners with very different ideas about what to do, and it changed from what it was to what it could be.

So many cooks in the kitchen.

That was holding up the bidding process.

News corp.

Thought one thing and disney felt the other thing.

There is nobody to lead the charge.

Can i ask you a pregnant question?

That would be simple, when you look at hulu, is it successful right now?

Does hulu have a building momentum?

It absolutely has screwed it has 4 million paying subscribers.

There is a real audience.

It is growing.

You cannot shun that aside.

Perhaps giving netflix a run for its money.

How about a shameless plug?

You've got a brand-new podcast rid -- podcast.

It is by alex sherman and i. we are putting together weekly roundups of what is going on in the media industry.

We talk about hulu, john malone, and the moves for consolidation.

In fact, our twitter question of the day has a lot to do with what we have been discussing -- what is your favorite streaming service and why?

Is it hulu or netflix or amazon prime?

Tweet us.

This text has been automatically generated. It may not be 100% accurate.

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