FOX and NBC Blocks Simpsons & Family Guy Clips On YouTube, But Adds It Back Themselves While Promoting Hulu

Posted May 14, 2008

Hulu was started in March 2007 by NBC Universal and News Corporation.  News Corporation is the parent company of FOX and 20th Century FOX.  Hulu raised $100 million from private equity firm, Providence Equity Partners in October 2007.  The foundation for Hulu’s creation is based on the premise that YouTube was hosting video content owned by FOX and NBC.  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.  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.  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.  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.  What’s your thoughts?