ITV and Hulu poised for joint content deal later this month

The landmark deal will significantly boost Hulu's UK appeal, as well as potentially transforming ITV's online presence.

As part of the deal, ITV will gain an equity stake in Hulu UK, understood to be about 25%. Hulu's parent company is equally controlled by Disney, NBC Universal, Providence Equity and News Corp.

Some ITV shows will be available exclusively on Hulu UK. ITV is the only UK broadcaster expected to sign an exclusive online content deal with Hulu.

Central to the deal has been a resolution to disagreements over who will sell advertising around ITV content on Hulu. But it is understood both companies have come to what one source called a "happy compromise".

An agreement allowing Hulu to distribute clips or short versions of ITV shows is understood to already be in place and a deal for full-length ITV shows is close.

Following the deal, Hulu plans to appoint its first UK chief executive.

Its plans to launch in the UK are being handled by Hulu's senior vice-president of international, Johannes Larcher.

Hulu was expected to launch earlier this year following the demise of Project Kangaroo, the online VoD venture backed by ITV, Channel 4 and BBC Worldwide, which was blocked by competition regulators in February.
 
However, since then, the online video market has changed markedly with the launch of MSN Video and the imminent launch of YouTube's long-form service and SeeSaw, the VoD service formed from the remnants of Project Kangaroo.

ITV and Hulu declined to comment.