“Outline transition plan for new CEO. Discuss potential candidates and process,” states a confidential internal memo dated in July, and obtained by Variety. The three-page document reportedly details how two of Hulu’s parent companies, News Corp. and Disney, plan to transform the streaming service.
“Whether that plan will be carried out with or without CEO Jason Kilar, whose future at the joint venture has been the subject of speculation for nearly two years, is the question,” reports Variety. “But sources caution that no search committee has been hired nor have other candidates been approached for his job. There have been preliminary talks between Kilar and Hulu board members about his future, but without resolution.”
The article notes this is an example of the “central tension gripping media conglomerates today as they juggle the often conflicting interests of growing the brands of tomorrow while still protecting existing revenue streams.”
A management buyout of Providence Equity Partners, another Hulu owner, is expected to close in September. The buyout will allow Hulu execs with vested shares, including Kilar, to cash out. The change in ownership structure could also lead to significant changes in content licensing agreements.
“As tremendous a payday as the one likely coming to him next month, he’s likely to be richly rewarded for sticking it out and growing the company to the point that could yield greater upside down the line,” the article points out regarding Kilar. “That said, his owners remain concerned he has enough money coming to launch a new vision elsewhere.”
According to Variety, the memo also outlines potential amendments to programming:
1) “No more exclusivity for current-season content once restricted to Hulu and the networks’ respective websites. Now Disney and News Corp. can turn around and license programming to another third-party, i.e. YouTube, which could dilute Hulu’s competitive advantage in the marketplace.”
2) “No more content parity. ABC.com and Fox.com will be able to hold back certain content to differentiate their own sites from Hulu, which was once entitled to everything on the networks’ sites.”
3) “Exclusive ‘super-distribution’ rights Hulu once retained to syndicate content to third-party sites like Yahoo and AOL would revert back to Disney and News Corp.”
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