the Hulu Chain

After playing with Hulu, pondering Hulu, and then reading an assortment of articles about Hulu, I am swimming in Hulu tidbits that seem to all link together…
  • Hulu is free and consequently spreading like wildfire (ok – it might be that Alec Baldwin commercial too)
  • Right now Hulu is losing money…about 9 million in the last year
  • Speaking of…how do they make money?  With advertising just like major network TV
  • Through the thumbs up thumbs down option, advertisers are getting feedback from users on the ads created for Hulu
  • Watchers, in turn, are getting ads tailored to their interests (although not necessarily products that match up – I like ads for things I have no interest in buying)
  • Why are NBC, CBS, etc providing their shows to Hulu?  What are they getting?  Well, I read that Hulu shares about 70% of their income with their content partners. 
  • Broadband networks are now reacting to the impact of streaming video with download-oriented protocols. 
  • Google now appears to be looking into figuring out how to adapt to all of our crazy streaming by working with service providers to cache some of its content for more rapid delivery.
  • Hulu made me buy  a new TV – Well, ok it might have been the combo of my converter box having its final hurrah, my disinterest in another monthly financial commitment of cable when I get 20 some channels for free, and, now, the availability of Hulu.  Yesterday, I bought a TV that I can connect to my computer. 
So, what is on the horizon?
  • Well, there are likely to significantly fewer dorm rooms with actual TVs
  • With such a large following all ready, it is likely that Hulu will be able to make money through tweaks to their advertising and circulation strategies. 
  • Rumor has it that Hulu has already hinted at the possibility of making itself a charged site
  • Small independent shows without the backing of network or cable television have more of a chance to get on a site like Hulu and gain an audience
  • TV shows will compete more on the merits of the individual show than based on the timeslot that it is given.  For instance, while a show might not be able to stand up against a timeslot that has it paired against The Office, it may be in the top 10 shows available via video stream
  • Network and cable television will need to adapt to a revenue stream that is split between traditional advertising and advertising through sources such as Hulu and any other stream that is on the horizon

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