Revisiting Hulu and its monetization plans
A few days back I wrote my thoughts on how Hulu plans to start charging for content in 2010. This month’s Fast Company magazine in its story on Jason Kilar (CEO, Hulu) further broaches the subject of monetization on Hulu.com
As Kilar builds on Hulu’s vision to become the online authority on TV video, advertiers have responded well. In two years alone, Hulu’s revenues have shot from zero to about $120 Million (250 adveritsers). It is still a pittance of what broadcast networks make from adverising, but, atleast there are revenues.
Kilar is smart to point out however that any one model is not going to solve Hulu’s monatization issues.
ilar calmly explained that he wanted Hulu to be the online authority on TV video, just as Amazon is the expert site for books. If people are looking for a particular show — any show — Hulu should help them find it. As Kilar sees it, shows are the brands users care about, not the networks that air them. Fast Company provides some indiciation of what future models to expect from Hulu.
“We don’t think any one consumer model is the answer,” says Kilar. (Hulu is also exploring international expansion and, according to analysts, an iPhone app). The most likely option is adding a subscription service alongside free content. Think of it as Hulu Premium — an online version of what HBO did to distinguish itself from standard cable service. For a monthly fee, VideoNuze’s Richmond suggests, members would get ad-free content on Hulu, early access to programs, and more comprehensive archives. For a share of the fee, companies would make more shows available. Most important, Hulu could offer those subscribers Boxee-style access to TV, giving the networks a long-awaited convergence strategy with a steady revenue stream.
2010 should reveal these new undertakings at Hulu. I will be following closely.