Samsung unloads VOD biz ahead of likely video services relaunch

This week Samsung closed down its Video Hub, which previously offered movies and TV show episodes for rent and sale. In a FAQ, Samsung had the following to say about the closure:

“Samsung strives to deliver great content experiences on Galaxy mobile devices and Samsung Smart TVs and we’re constantly working to make those experiences unique and enriching for our consumers. As part of our ongoing strategy, Samsung Video and Media Hub will no longer be available as of July 31, 2014.”

But not all is lost for people who had purchased movies from Samsung. The company struck a deal with the online video store M-Go to take over its existing customer relations. The move, which was first reported by Recode, will allow consumers that have previously purchased digital movies and TV show episodes from Samsung to keep accessing them through M-Go.

The closure of the Video Hub is part of a larger reorganization of Samsung’s digital content business. The company announced in May that it was closing down its Music Hub and Book Hub on July 1st as well. The latter, which was essentially Samsung’s very own e-book store, has been replaced with a Kindle (S AMZN) app for Samsung mobile devices. On the music front, Samsung has been promoting its new Milk Music app, which offers a Pandora-like (S P) service for users of Samsung mobile phones.

So what will replace the Video Hub? Apparently another video service: Samsung has been hiring talent to build a “next generation video service,” as the company put it in one of the job descriptions. The handover of its existing Video Hub to M-Go suggests that this new service won’t be about iTunes-like (S AAPL) video sales and rentals. Instead, it could be subscription-based, advertising-supported, or a combination of the two.