The report indicates that Hulu is in talks with many major German TV networks to reach a deal that would allow the service to stream content throughout the country. Previously, Hulu was unsuccessful in reaching deals with European TV networks because many of them had plans to start their own online, on-demand services. However, German regulators blocked such actions by the country’s networks, seemingly leaving the door open for Hulu.
While there aren’t many details about the discussions, it’s likely that Hulu will only offer a premium subscription model to German consumers. This is the model the company is using in Japan — the company’s first expansion into international markets — earlier this year. It’s also unlikely that Hulu will launch a Germany-based service until it has enough content from local TV networks, as the current offering of U.S. content wouldn’t provide nearly as much value.
Expanding into international markets is a good move for Hulu. The company’s owners, composed of major U.S. TV networks, failed to sell Hulu earlier this year because potential buyers were worried that the service’s value depended entirely on content agreements with the very same TV networks that owned Hulu. By expanding into new countries, Hulu can prop up its value.