Hulu was started in March 2007 by NBC Universal and News Corporation. Â News Corporation is the parent company of FOX and 20th Century FOX. Â Hulu raised $100 million from private equity firm, Providence Equity Partners in October 2007. Â The foundation for Hulu’s creation is based on the premise that YouTube was hosting video content owned by FOX and NBC. Â NBC and FOX wasn’t paid any royalties so both companies ensured that their clips were not being distributed by the Google-owned top video sharing site.
Clips of The Simpsons and Family Guy was being removed by the hundreds on YouTube due to violations reported by NBC and FOX. Â But now the clips are reappearing, only this time with self-promotional material built into the video content as shown in the screen shot below:
Hulu owns the rights to all the Family Guy and Simpsons clips, but the question is whether this is an acceptable principle. Â Hulu did not gain as much traction as YouTube did so they started adding the clips back to the same site they wanted it banned from. Â And at the same time, Hulu is encouraging users to visit YouTube’s biggest competitor on video clips within YouTube that they uploaded.
It’s poll time. Â What’s your thoughts?