TV networks test online video site in bid to usurp YouTube’s dominance

HULU, an online video service formed by two media conglomerates, began private testing yesterday with two new partners in one of big media’s most ambitious attempts to court viewers wherever they spend time.

The joint venture of General Electric’s NBC Universal and Rupert Murdoch’s News Corp, which earlier had trouble persuading other big content producers such as Viacom and Walt Disney to join, now adds shows from Sony Pictures Television and Metro-Goldwyn-Mayer Studios, Hulu executives said.

The long-awaited free, advertising-supported service makes its debut as consumer interest over watching video clips and television shows on the internet.

Despite Hulu’s high powered backers, the service has drawn scepticism among media and internet executives, who have struck out on their own by offering shows on their own sites and are either selling shows on Apple’s iTunes or offering it for free on other sites.

But these companies have yet to garner the hundreds of millions of viewers on such services as Google’s top online video sharing service YouTube.

Ahead of Hulu’s anticipated public launch early next year, NBC Universal has stopped offering its shows for sales on iTunes and pulled its channel off YouTube.

From yesterday, Hulu offered about 90 TV shows from the four companies and smaller partners ranging from current prime-time hits such as Heroes and The Simpsons to vintage shows Miami Vice and The A-Team.

It also made about 10 feature films available, including The Breakfast Club and The Blues Brothers.

Shortly after the test begins, these shows will also be made available on a handful of the biggest online distributors Time Warner’s AOL, Comcast, Microsoft’s MSN and Yahoo.

“Given that they’re late, I have to admit that they’ve actually delivered more than I expected,” said research analyst James McQuivey.

Mr McQuivey pointed to the site’s ability to let users share and embed entire shows or movies everywhere on the web as surprising features to be offered by a service controlled by media companies who have spent its entire history directing where and when its shows can be accessed.

Although framed in the press as big media’s YouTube-killer, Hulu chief executive Jason Kilar said the site aims to make it the premier destination for full length shows and movies.