Disney rumored to be in talks with Hulu

PaidContent reports a rumor that Disney is back in talks with Hulu to put ABC Shows on the online video site. Hulu has quickly become the second most popular video website. As TV show delivery moves online it makes sense for Disney to want to get on board.

Earlier this month I mentioned that Hulu or a similar service was the way Disney should be headed instead of the online rental service CEO Bob Iger had announced. If this rumor is true, Hulu could work good in conjunction with the rental service. The free content on Hulu would be a gateway to rental of better quality or DVD like features on the pay service.

Disney has a huge library it could be monetizing online. It’s the perfect example of the long tail. A move like joining Hulu is the next logical step.