Thursday reports indicated that Sony is close to reaching a deal with Hulu that would provide the latter's proposed subscription-based On Demand TV service for the PlayStation Network. Although names were not specified, sources said that the partnership could be announced as early as next week.
But the potential Sony-Hulu relationship could possibly hurt PS3-generated revenue for Netflix, another service that offers subscription-based TV content. Like Netflix, PlayStation 3 owners would subscribe to Hulu through the network. Users would then have access to current and prior prime-time television shows from networks such as ABC, FOX, and NBC.
Currently Hulu is in talks with CBS Corp., Time Warner Inc., and Viacom Inc. to add their shows to the overall Hulu lineup. There's even mention that Hulu is in talks with Microsoft to bring a $9.95 On Demand subscription service to Xbox Live--Netflix resides on this platform as well.
As it stands, Hulu's present method of generating revenue is through the site's advertising even though access to the programming is free. The new subscription plan is a means for the company to expand ways for viewers to access programming while also offering new shows to paying viewers.
Representatives from both Sony and Hulu have declined to comment on the possible deal.