In most tech businesses right now, the focus on future growth has been global expansion into markets where there are fewer competitors and more eyeballs to sell ads to. Hulu has no doubt been trying the same, but now it’s actually going to sell its Japanese operations off, instead of trying to continue to promote growth on its own. The company announced recently that Nippon TV will acquire Hulu’s Japan business and will run all day-to-day operations.
“Hulu will be licensing our brand and technology and will continue to provide services to the Japan business – loyal fans of the service will enjoy the same seamless user experience and product innovation they have come to love,” Hulu CEO Mike Hopkins said. “In addition to assuming the day-to-day management of the Japan business, Nippon TV will be adding popular Nippon TV titles to the service.”
Presumably, Nippon TV has the ability to scale Hulu’s services further than Hulu may have been able to do itself. Though by licensing Hulu’s brand, the streaming media network also wins because its services are now being promoted by Nippon TV – the top rated TV network in Japan – and Hulu doesn’t actually have to run the business operations. Terms of the deal were not disclosed.