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Viacom Expanded Its Content Licensing Deal with Hulu

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Viacom’s deal with Hulu

Viacom (VIAB) is preferring Hulu over Netflix (NFLX) for content licensing. Early last month, Viacom extended its content licensing deal with Hulu. According to a Variety report, under the multiyear agreement, Hulu will have exclusive SVOD (subscription video on demand) rights to all of Viacom’s past and future seasons of TV shows on Comedy Central and Nickelodeon.

Hulu entered into a significant content licensing deal with Viacom in 2011. Under the content licensing agreement, Viacom’s shows would also be available on Hulu’s $7.99 ad-supported and $11.99 ad-free monthly plans.

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According to a Digitalsmiths 2Q15 Video Trends Report, Hulu is the third most popular streaming service among users. It’s just behind Amazon’s (AMZN) Prime Instant Video service. Netflix is the most popular streaming service. It has 49.4% of the subscriptions while Hulu has 11.8% of the subscriptions. However, Hulu’s popularity is rising quickly among users.

Why does Viacom prefer Hulu over Netflix?

Viacom stated in its fiscal 2016 earnings call that it’s also developing short-form content for platforms like Snapchat. Viacom said that when it comes to content licensing deals to SVOD players like Hulu, the company decides what kind of monetization it’s getting from the deal on both ad-supported and ad-free platforms.

Viacom accounts for 0.33% of the PowerShares QQQ Trust Series 1 ETF (QQQ). QQQ also holds 12.6% of Apple (AAPL).

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