Disney Buys Hulu Stake

Disney has purchased an ownership stake in the online video site Hulu.com.

The studio has agreed to a deal that will make it an equity partner in the site along with NBC Universal, News Corp. and Providence Equity Partners, Variety reports.

The studio will make available on the site ‘ the No. 2 online video site behind YouTube ‘ full-length episodes of programs from the Disney-owned ABC netork, such as Lost, Grey’s Anatomy and Desperate Housewives.

The streaming webcasts will allow Disney to place ads in the shows to generate revenue.

Hulu streamed some 348 million videos in March and reported a unique user base of 8.9 million people.

Disney had been in talks to buy into the site since before its launch, and pulled the trigger after its research showed little overlap between Hulu users and people who viewed its shows on ABC.com, the trade reported.