Disney's new web strategy: Joining hulu.com

March 30, 2009 3:57:20 AM PDT
Walt Disney Co., signaling a dramatic shift in its Internet strategy, is negotiating with longtime media rivals to take an equity stake in Hulu.com, the fast-growing website where users can watch movies and TV episodes for free.

In exchange, Disney would provide episodes of ABC shows to Hulu, significantly broadening the program offerings to include such hits as "Grey's Anatomy" and "Desperate Housewives."

The discussions, which heated up in recent weeks, represent an evolution of ABC's Web strategy, which had focused on drawing viewers to the network's own site.

Disney appears to have decided that the power of the ABC and Disney names is not strong enough for the company to compete and that it needs broader distribution for its shows.

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