The internet TV world doesnt stay still for long and Hulu has yet again grabbed the headlines. In a bid to get ABC content on its internet TV website, ’serious’ discussions have been taking place between Disney (owner of ABC) and Hulu that could bring ABC tv content onboard.

The story goes that Disney have offered the ABC content in exchange for 10% of Hulu’s business. To put that into monetary terms, investors Providence Equity coughed up $100 million for 10% of Hulu. Existing Hulu owners NBC and Fox each own 45% of the website.

With competing sites such as TV.com, who have seen their traffic grow substantially during the first quarter, leveling the playing field and causing Internet TV sites to tighten up content distribution agreements between various networks, a deal with Disney could give Hulu the edge it needs to stay ahead.

There is one small fly in the ointment though, the exclusive online distribution of Fox and NBC content will expire after 2 years. So if Disney and Hulu do come to an agreement, Hulu’s stronghold could be loosened by either Fox or NBC distributing their content with another site, or even launching another of their own.

Final details are still in discussion such as how and when the Disney owned content would be distributed through Hulu. Why is this happening now though? Hulu has celebrated the first anniversary of leaving beta and is in the midst of a national branding campaign that started during the Super Bowl with an ad featuring Alec Baldwin. With all of the online TV developments they really need to work hard at staying at the forefront of internet tv so the logical solution is to bring in more quality content.

Its next manouvere must be to get streaming internationally then it should stay at the top of the internet tv tree.

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