As Consumers Turn Online for Video, AT&T Strikes Hulu Deal

In a sign of the increasing importance of online video, AT&T said Wednesday it will offer Hulu's streaming TV service to its customers.

AT&T is the nation's No. 2 wireless provider. It also sells TV, Internet and home phone service and is in the process of buying DirecTV, which would make it the country's largest traditional TV provider.

Telecommunications and cable providers are trying to tap into high demand for streaming video. Verizon, the No. 1 wireless provider, said Tuesday it was buying AOL for $4.4 billion in part because of its video offerings.

Starting later this year, an AT&T customer will be able to watch Hulu content through an AT&T app or website. There will still be a separate bill from Hulu, whose full catalog of TV and movies costs $8 a month through its own site and apps. The companies are also working on a Hulu TV app for AT&T customers.

AT&T's U-verse TV and Internet subscribers also have access to live and on-demand video outside of their homes through a U-verse app. They will be able to watch and search for that video and Hulu video through the AT&T app, which is still being built, said an AT&T spokesman.

AT&T Inc. shares rose 34 cents to $34 in afternoon trading Tuesday. They are down 6 percent versus a year ago.
 

Copyright AP - Associated Press
Contact Us