Watch Out, Hulu: Big Media Getting Ready to Eat Its Young

Hollywood and the major record labels have always enjoyed a love-hate relationship with new media, alternating between roses and lawsuits for online entrepreneurs, if you will. Lately, it was looking a little like love was going to win. Hulu, after all, had convinced its detractors that even big dinosaurs can get things right, and record labels had started to embrace services like MySpace Music and Last.fm. But like an alcoholic who just can’t resist that drink, big media looks ready to relapse.

There’s been a lot of bad news out of the so-called Music 2.0 space this week, with Imeem said to be in financial trouble, and Last.fm forcing some of its subscribers to cough up around $4 per month. There’s also a storm brewing in the online video world, where some networks have started to take their most valuable content offline in order to maximize traditional revenue, and platforms like Hulu are being forced to fight any attempt to bring online content to the living room.

Record labels used to be something like the suicidal canary in the coal mine for Hollywood, eagerly moving from one life-threatening disaster to another.

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