Of course this leaves people on all sides wondering what will happen to online video content site Hulu? While specifics are still unclear, according the terms and conditions of the deal, Comcast will be giving up NBC Universal’s position on the Hulu board, which it shares with ABC and Fox.

According to the Justice Department’s release:

“Comcast must relinquish its management rights in Hulu, an OVD.   Without such a remedy, Comcast could, through its seats on Hulu’s board of directors, interfere with the management of Hulu, and, in particular, the development of products that compete with Comcast’s video service.   Comcast also must continue to make NBCU content available to Hulu that is comparable to the programming Hulu obtains from Disney and News Corp;”

Three company merger restrictions on the FCC’s release are also noteworthy, with regards to Hulu:

• Does not enter into agreements to unreasonably restrict online distribution of its own video programming or programming of other providers.
• Does not disadvantage rival online video distribution through its broadband Internet access services and/or set-top boxes.
• Does not exercise corporate control over or unreasonably withhold programming from Hulu.

Comcast will still retain an economic stake in Hulu. But at first glance it seems as though the broadband provider having any influence in decision-making for the online video service (which at its core essence threatens the Comcast cable subscription model) was the key concern in both the FCC’s and the DOJ’s anti-trust deliberations.

We’ll have to wait until January 28th to see how the future of online video will begin to play out.

Image: Autowich

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Authors: Alexia Tsotsis

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