Hulu Adds CBS, The Most-Watched Network, To Live-Streaming Service

Hulu, the online streaming video platform, announced on Wednesday it has reached a new agreement with CBS Corporation (NYSE: CBS).

As part of the agreement with the country's most-watched TV network, Hulu's subscribers can live stream CBS' content through the soon-to-be-released, live-streaming service. Hulu's customers will also be able to access on-demand programming as well as content distributed through CBS Sports and POP.

The agreement also extends Showtime Networks' existing deal with Hulu, in which Showtime is offered as a premium subscription service to customers who subscribe to Hulu's live or video-on-demand service.

Hulu has already secured agreement with Twenty-First Century Fox Inc (NASDAQ: FOXA), Walt Disney Co (NYSE: DIS) and Turner Networks as other providers of live content through Hulu's platform.

There may be one problem with Hulu's announcement. Lucas Shaw, a Bloomberg reporter who covers the entertainment sector, tweeted that Hulu will charge less than $40 for its service. He added that analysts indicated this price point "makes it almost impossible to turn a profit."

Needham's Laura Martin also told Benzinga that the CBS and Hulu deal will likely start at $2.50 to 3.00 per month. The analyst also added that the biggest potential impact of the deal would be with other skinny bundle services, such as DirecTV.

Nevertheless, Hulu noted its agreement brings its total offerings to "more than 35 top networks, including broadcast networks FOX and ABC; Fox Sports networks such as the Fox Sports 1, Fox Sports 2 and BTN; ESPN, ESPN2, ESPNU, ESPN-SEC and ESPN 3; Fox Regional Sports Networks across dozens of key national markets; Disney Channel, Disney XD and Disney Junior; Fox News and Fox Business; Freeform; FX, FXX and FXM; and National Geographic and Nat Geo Wild."