Business, Cable, General

Would you pay for Hulu?

If you can see this blog then you probably know what Hulu is. For those that do not it is basically free tv on the internet. There has been controversy back and forth on Hulu with most people loving the service. I like Hulu and have enjoyed shows/movies on it mostly because of three reasons;

  1. Because it’s FREE
  2. It’s on demand
  3. It’s FREE

Well for all of you enjoying Hulu or one of it’s many partners, this announcement was made 10.21.2009:

“I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value,” Carey said. “Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business.” – Chase Carey – News Corp. Deputy Chairman

I am curious what they are trying to say exactly. Are they saying people only find TV programming valuable if they pay for it? Maybe they are saying that Advertisers don’t think it’s valuable enough unless people are paying. What is a meaningful subscription model? Let’s see what you think with the below poll, what would you spend for monthly Hulu service?

How Much Would You Pay For Hulu?

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Some facts on Hulu:

Despite more than 40 million unique visitors and 500 million free online streamed videos, Hulu continues to lose about $33 million annually. It shares ad revenues with content owners. Still, Hulu’s three broadcast network owners lose an estimated $920 in ad revenues for every 1,000 viewers who substitute the PC for the TV – Analyst Laura Martin.

If Hulu does go to a subscription model it better well come with a box i can hook up to my TV. If i am paying monthly then i want a traditional viewing experience. The one think i don’t think they are getting is that people use Hulu because it is easy. More importantly it’s easier than torrenting a movie or show. As soon as you start charging then torrenting seems easier to some. If they are concerned about the value of the content then make better content don’t charge to imply value. If ad revenue is an issue there must be a better way of engaging the audience while keeping the content free to the user.