Hulu at a crossroads

As online TV hits the mainstream, established services are frantically trying to solidify their positions on the content pile. Hulu, a partnership between broadcasters NBC, Fox and Disney, has so far been one of the leading providers of online TV, offering programmes and additional content from each of the studios.

However, a leaked memo that emerged over the weekend hints that the studios are getting restless with the management style of CEO Jason Kilar. According to the internal memo, the parent companies are discussing a “transition plan for a new CEO,” as well as possible candidates to take over from Kilar.

Hulu currently has around 1.5 million subscribers, and Kilar said earlier in the year that his record spoke for itself: “We grew the business 60 percent from 2010 to approximately $420m in revenue in 2011.”

The company is going through a transition phase, with the management pushing through a buyout of investors Providence Equity Partners, which is set to be finalised in September. Kilar has clashed with the studios over the amount of adverts that they insist placing within each programme, and it is thought that he has become fed-up with the situation.

Kilar would be set to receive around $100m from the selling his equity, and the leaked memo implies that Disney and Fox, who both own around 30 percent of the company, are making contingency plans if Kilar does cash out.

Hulu has faced increased competition from services like Netflix, while Apple is expected to beef up their TV offering in the coming months.