A top Hollywood producer lashed out against Hulu amid reports that the popular online hub for watching TV shows is preparing a $2 billion public offering, saying content providers will come away empty-handed.
Steven Levitan, who created ABC’s hit comedy “Modern Family,” took to Twitter this week to trash the notion of a Hulu IPO.
“Some estimate Hulu IPO could bring in $2 billion. What do the content providers get? Zero. What is Hulu without content? An empty jukebox,” he tweeted.
Levitan, whose shows include the 1997 sitcom “Just Shoot Me,” also complained about the decades-old TV ratings system developed by Nielsen that has yet to factor in a growing number of mobile devices capable of streaming TV shows and other content.
“We need a ratings system that counts all viewers on every format: TV, DVR, Hulu, iTunes, iPad Player, network Web sites,” he posted.
His views were championed by Hart Hanson, creator of the Fox show “Bones,” who tweeted that he’d like to find a step ladder to “kiss [Levitan] on the lips.” (News Corp. owns Fox and The Post.)
The controversy is bound to get louder when a slew of new Internet-enabled TV sets hits stores this fall, along with a proliferating number of tablet devices and smart phones all promising some form of on-the-go video.
If Hulu does go public this fall, as was reported this week, it could lead to a host of headaches for Hollywood, as content creators angle for their cut of the action.
Media companies are trying to figure out how to profit from the Web and other newer distribution channels without giving customers a reason to cut the cable cord. Nielsen figures show that traditional TV viewing still accounts for the vast majority of all viewing.
Still, content creators complain that Web viewing and other electronic delivery methods are cutting into “back-end” revenue, such as DVD sales, which have been in steep decline.
“Overall viewership determines the back-end,” said one TV executive. “We are starting to see new business practices emerge.”
The fight over digital revenue is part of what prompted the 2007 Writer’s Guild of America strike. Currently, Nielsen rates live television viewing and catch-up viewing on DVRs, but it won’t begin reporting Internet usage as part of its TV panel until February of next year. There’s little data available to track mobile viewing, and Apple keeps a tight rein on download data from its iTunes store.
Levitan discussed the issue at a recent Los Angeles gathering of TV critics, arguing that some two million viewers were watching on new platforms that weren’t being monetized.
Meanwhile, ABC, part of Walt Disney Co., makes shows available for free on the iPad through its ad-supported app, as well as on ABC.com and at Hulu.com, both ad-supported services that collect few ad dollars.
Levitan did not immediately respond to a request for comment. According to The Hollywood Reporter, Levitan has been lobbying ABC and Disney to stop distributing “Modern Family” online.