11.03 Europe/London, July 22, 2011 By Chris Dziadul

Apple is understood to be looking into the possibility of making a bid for Hulu.

However, buying the online video service could cost it in excess of $2 billion (€1.4 billion).

According to agency reports, Hulu’s owners Walt Disney Co, News Corp and NBC Universal are prepared to offer prospective buyers a five-year extension of programme rights, including two years of exclusive access.

Hulu was put up for sale last month by its owners, who include Providence Equity Partners, after they decided not to hold an IPO.

Other parties believed to be interested in buying the company include AT&T, Google and Yahoo.

By buying Hulu Apple could compete more effectively with the likes of Amazon and Netflix.