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The Associated Press July 22, 2011, 1:26PM ET

AP source: Apple considering Hulu bid

Apple Inc. is in talks to potentially bid for video-streaming service Hulu, according to a person close to the situation.

The person spoke on condition of anonymity because they are not authorized to talk about the matter.

An acquisition of Hulu could bolster Apple's iTunes store, which provides videos users can rent or buy, and help it compete with Netflix Inc. Hulu offers a subscription streaming service. It also brings in revenue from ads that accompany content it streams to users free-of-charge.

Hulu, whose owners include The Walt Disney Co., News Corp. and Comcast Corp., started presenting its financial information to interested bidders late last month, after an unsolicited offer prompted its board to look for other offers.

Apple's interest in Hulu was reported earlier by Bloomberg News.

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