Hulu, the free site, facing some difficult choices - GoFuckYourself.com

SteveHardeman · 03-03-2010, 10:06 PM

Interesting article that relates to the adult industry "free" issues as well.

Quote:

Hulu, the free site, facing some difficult choices

It may have to charge to continue running, but that could cost it viewers

Hulu's days as a free online video site could be ending soon.

Comedy Central's decision to yank two of the most popular shows on Hulu ? "The Daily Show" and "The Colbert Report" ? in a dispute over splitting ad revenue is the latest blow to the entertainment industry's attempts to make money off ads that run with free video.

Yet Hulu's most viable alternative ? charging for access to some videos ? could turn off viewers and crimp the site's explosive growth. Ultimately, the remedy to Hulu's current dilemma could leave the site even worse off, a poor shadow of its former self.
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Many viewers are drawn to Hulu because of its ease of use, not because they couldn't get much of the same content elsewhere. Hulu's videos simply aren't exclusive enough ? compared with, say, Time Warner Inc.'s premium HBO cable channel.

If Hulu charges for a TV show or movie, the viewer could simply watch it over the air live, be more consistent about recording it to view later or catch the program for free through a video-on-demand service offered by cable TV and other providers.

"There are very few people who would be willing to pay for it," said Bruce Leichtman, president of the Leichtman Research Group Inc. in Durham, N.H.

He noted that viewers could simply ask themselves, "Why would I pay for it when I can get it on video on demand?"

Chase Carey, chief operating officer of Hulu co-owner News Corp., has said that the site would have to start charging for some video eventually, though he and other officials have been mum about when that would happen and what aspects would remain free.

Hulu has had trouble turning a profit because it doesn't pull in enough revenue to pay for operations. Online ads simply don't generate as much revenue as broadcast TV commercials.

In the latest blow, Hulu disclosed in a blog this week that Comedy Central would yank its shows from the site beginning next Wednesday.

Comedy Central and Hulu couldn't come to terms on how to share ad revenue, according to two people with knowledge of the discussions, speaking on condition of anonymity because they were not authorized to comment on private talks.

"The Daily Show" and "The Colbert Report" will still be available on sites run by Comedy Central, letting the Viacom Inc. network reap all of the ad revenue. About a half dozen other Comedy Central shows will also leave Hulu.

Given that "The Daily Show" is the third most popular show on Hulu, Viacom's exit is a big blow to the experiment by the entertainment companies that own it ? News Corp., Walt Disney Co. and General Electric Co.'s NBC Universal ? to see whether they can successfully make money off ads and bypass cable and satellite TV companies.

Traffic will likely take a hit as Comedy Central fans leave the site, and Comedy Central proves with its departure that it doesn't need Hulu to bring in online traffic and revenue.

The next step in the Hulu experiment will be to decide what and how much to charge.

But a Leichtman survey, released Tuesday, found that 81 percent "strongly disagree" with the notion of paying $9.95 a month for a service like Hulu, while only 5 percent "strongly agree" to pay.

For Hulu to successfully charge fees, whether monthly or on a per-video basis, it would have to offer exclusive or premium content that viewers couldn't easily get elsewhere.

Its owners certainly have a wealth of content to unleash ? but that would upset the cable TV, satellite and phone companies that offer video. These operators pay Hulu's owners fees to carry their cable channels and increasingly even local, over-the-air TV stations.

Content providers have had mixed success charging extra for video. HBO, CBS Corp.'s Showtime and Liberty Media Corp.'s Starz are able to charge a monthly fee on top of what viewers already pay their cable TV, satellite and phone companies. But others, such as the Disney Channel, have to be satisfied with staying on basic cable lineups.

If Hulu started charging, it would certainly crimp its growth. In December, less than three years since its launch in March 2007, Hulu delivered more than a billion videos, according to Web traffic measurement firm comScore Inc.

Regardless of whether Hulu charges, traffic would likely take a hit as more shows from cable channels become available for free online to customers of cable TV and other subscription services. Comcast Corp. began offering content from about two dozen channels online in December. Time Warner Cable Inc., DirecTV Inc. and Verizon Communications Inc. are following suit.

Hulu is essentially left without many options.

One scenario is for Hulu to merge free and paid content on its site. It could make the premium content available for a monthly subscription fee with options to rent or purchase shows a la carte, said Tony Wible, an analyst at Janney Montgomery Scott. Hulu will probably continue to have ads as well.

A fee-based Hulu could come with better content. Currently, Hulu carries TV shows that air for free on the broadcast networks, as well as some cable shows, older movies, clips and movie trailers. But if Hulu starts to charge, newer movies could hit the site.

However, the paid-video market is already crowded with rivals such as Apple Inc.'s iTunes, Amazon.com Inc.'s Unbox and Netflix Inc.'s online delivery of movies.

Hulu has to be different ? and that's not an easy task.

Sorry if it's been posted before but it's a good thought-provoking article.

starpimps · 03-04-2010, 01:55 AM

good read
thanks for the post

luv$ · 03-04-2010, 02:02 AM

dude your avatar looks JUST like an old buddy of mine who used to make bullets in the basement.

Every time I see it I get tripped out lol

BIGTYMER · 03-04-2010, 02:48 AM

Viva FREE Hulu.

Barefootsies · 03-04-2010, 03:51 AM

Quote:

Originally Posted by starpimps

good read
thanks for the post

Agreed.

The "free" business model will never work for all. Just as the tube site will not work for all.

There are different segments to this industry, and media in general. People keep trying to cram all of it into this nice little box of 'free', and/or ad driven revenue, and it will not fit.

Traffic tube dudes do not give a rat's ass about the longevity of the production side. The production guys are spitting blood about their shit being stolen to drive traffic and getting no revenue from it. The BROgrams are paying the traffic guys trying to get a few bucks from sales reinforcing the traffic tubes to stay in business.

There are many factors at play in this industry, and there is no one harmonious single minded vision beyond making money. Production guys do not give a rat's ass about traffic. Traffic guys do not give a rat's ass about content. A lot, not all, BROgrams do not give a rat's ass about consumers beyond the one time sign up, bang their card for max revenue. This is reinforced by a network of sites that have not been updated since 2001.

Free will work for traffic guys. But for the rest of the industry, needed for content, free is not a sustainable business model when there are costs to distribution and production. As long as it costs to pay models and staff. You are never going to have 'free'.

What people forget is, and this shows the age of some in this industry, that the 'free' Utopian internet dream was crushed in late 90's and early 2000's. It does not work. It has been proven. This is 10 years later and people saying, and doing, the same bullshit as back then. People will not pay, this and that. All said and done before.

Open a history book.

EscortBiz · 03-04-2010, 05:04 AM

its almost impossible to go from free to paid and not destroy everything, once you spoil the surfer you cant undo it.

yahoo free mail to paud mail over 30 million accounts only 150 ended up paying)

ny newsday over 400,000 hits daily, they spent 4 million to build their paid version only 35 ended up paying

i can go on and on and you can argue that hulu is different, but its not, they will destroy it if they go paid, but its a business and not a charity and they must figure out a way to make money off it

the ad model dont work as the CTR on these sites is a joke

Barefootsies · 03-04-2010, 05:29 AM

Quote:

Originally Posted by EscortBiz

the ad model dont work as the CTR on these sites is a joke

GABScott · 03-04-2010, 05:49 AM

Personally I believe the way is to maintain a basic free service with a pay for premium option, so say that the video is interrupted every 10 minutes with an ad, premium members get add free access and a higher quality stream plus the ability to save streams for offline viewing.... Free to end user for a basic product is here to stay but payment for premium features can and is already working in several market places. These services of course have to be priced right, there are price points that people will not even think about before making a purchase so say 99c an episode is nothing to most people, micropayments are the way forward. But hell what do I know, still people seem keen on these iphone app thingies at 99c a time.....

DWB · 03-04-2010, 06:03 AM

FREE as a long term business model just doesn't work.

This will also apply to adult. Sooner or later, this model will die out.

halfpint · 03-04-2010, 06:19 AM

Cant view any of thier videos over here in the UK They should have gone world wide a long time ago and not restrict the viewing to certian countrys only

SteveHardeman · 03-04-2010, 06:25 AM

Quote:

Originally Posted by luv$

dude your avatar looks JUST like an old buddy of mine who used to make bullets in the basement.

Every time I see it I get tripped out lol

Now that you've divulged personal information about me I'm gonna have to put your name on one of those bullets. :-)

I have no idea who that dude is. Just thought it would make a good avater. All I know is if I had never shaved one time in my entire life since the beginning of me sprouting pubes, I would not have a beard that long.

I keep reading this article trying to get my brain to come up with some sort of solution. Thus far, no luck. It seems the very technology that made this industry one of the easiest ways to make big money is the same technology that is killing it.

The Heron · 03-04-2010, 06:40 AM

Quote:

Originally Posted by halfpint

Cant view any of thier videos over here in the UK They should have gone world wide a long time ago and not restrict the viewing to certian countrys only

They already cant' make money selling premium traffic think advertisers will pay more for nigerian traffic?

Caligari · 03-04-2010, 06:40 AM

Hulu sucks anyway.
They don't allow access in many other countries because i suppose they couldnt figure out how to merge international advertising....really weak.

With the exception of a few, their movies are freaking awful bottom of the barrel crap thats typically out of copyright and the only thing they had going of interest were the comedy central clips, family guy, american dad etc.

No one will pay for that imo

Caligari · 03-04-2010, 06:43 AM

Quote:

Originally Posted by halfpint

Cant view any of thier videos over here in the UK They should have gone world wide a long time ago and not restrict the viewing to certian countrys only

not even UK?? holy shit they suck. i know they dont have access in central/south america but UK and probably the rest of Europe? Screw those a'holes.

stickyfingerz · 03-04-2010, 07:03 AM

Quote:

Originally Posted by Caligari

Hulu sucks anyway.
They don't allow access in many other countries because i suppose they couldnt figure out how to merge international advertising....really weak.

With the exception of a few, their movies are freaking awful bottom of the barrel crap thats typically out of copyright and the only thing they had going of interest were the comedy central clips, family guy, american dad etc.

No one will pay for that imo

It FAR from sucks here in the U.S. I use it daily and love it.

Voodoo · 03-04-2010, 07:09 AM

You can't sell "Free".

TheDoc · 03-04-2010, 07:20 AM

"Hulu has had trouble turning a profit because it doesn't pull in enough revenue to pay for operations. Online ads simply don't generate as much revenue as broadcast TV commercials."

Hulu is applying the total cost of a production being paid for online vs through the tv, and saying it's not paying for operations. That's so lame.... they aren't saying Hulu isn't covering costs.

Hulu makes them money.... it just doesn't make them the big money like tv broadcasts do. And that's a problem for them.

If you people ever think 'free' is going away, you're going to be in for a very rude and sad awakening in about 20 years.

MaDalton · 03-04-2010, 07:54 AM

Quote:

Originally Posted by Caligari

Hulu sucks anyway.
They don't allow access in many other countries because i suppose they couldnt figure out how to merge international advertising....really weak.

no, it's because the copyright owners sell distribution rights for geographical areas and the local distributor would not be happy if the content is available for free while he had to pay for the rights.

Caligari · 03-04-2010, 08:00 AM

Quote:

Originally Posted by MaDalton

no, it's because the copyright owners sell distribution rights for geographical areas and the local distributor would not be happy if the content is available for free while he had to pay for the rights.

yes and you can get daily show, family guy etc on free TV in any other country and watch the ads, so why can't the copyright owner figure out how to sell ads in other countries on Hulu?

sweetcuties · 03-04-2010, 08:46 AM

Quote:

Originally Posted by Barefootsies

Agreed.

The "free" business model will never work for all. Just as the tube site will not work for all.

There are different segments to this industry, and media in general. People keep trying to cram all of it into this nice little box of 'free', and/or ad driven revenue, and it will not fit.

Traffic tube dudes do not give a rat's ass about the longevity of the production side. The production guys are spitting blood about their shit being stolen to drive traffic and getting no revenue from it. The BROgrams are paying the traffic guys trying to get a few bucks from sales reinforcing the traffic tubes to stay in business.

There are many factors at play in this industry, and there is no one harmonious single minded vision beyond making money. Production guys do not give a rat's ass about traffic. Traffic guys do not give a rat's ass about content. A lot, not all, BROgrams do not give a rat's ass about consumers beyond the one time sign up, bang their card for max revenue. This is reinforced by a network of sites that have not been updated since 2001.

Free will work for traffic guys. But for the rest of the industry, needed for content, free is not a sustainable business model when there are costs to distribution and production. As long as it costs to pay models and staff. You are never going to have 'free'.

What people forget is, and this shows the age of some in this industry, that the 'free' Utopian internet dream was crushed in late 90's and early 2000's. It does not work. It has been proven. This is 10 years later and people saying, and doing, the same bullshit as back then. People will not pay, this and that. All said and done before.

Open a history book.

Well said man

czarina · 03-04-2010, 08:50 AM

interesting article; it proves that free content is NOT worth it!

MaDalton · 03-04-2010, 09:03 AM

Quote:

Originally Posted by Caligari

yes and you can get daily show, family guy etc on free TV in any other country and watch the ads, so why can't the copyright owner figure out how to sell ads in other countries on Hulu?

because then he cant sell the distribution rights anymore - cause no one would pay him the same money as now if he would not have the geographical exclusivity anymore. and as you can see from the article, the income from ads on Hulu is so low that it would never make up for the loss of the revenue from selling the rights

TheDoc · 03-04-2010, 09:23 AM

You guys are funny... knocking free as if it's a bad thing that failed.

If anything, this is a great example of the free model working exactly like it should. You create a great product, get control of a huge market, then introduce a paid model. If you tried to do the paid model before mass attraction, it would have failed before the doors opened.

Caligari · 03-04-2010, 09:42 AM

Quote:

Originally Posted by MaDalton

because then he cant sell the distribution rights anymore - cause no one would pay him the same money as now if he would not have the geographical exclusivity anymore. and as you can see from the article, the income from ads on Hulu is so low that it would never make up for the loss of the revenue from selling the rights

for 80 percent of the movies on hulu there are no rights to sell, they are public domain. if hulu is paying a dime for the majority of those movies they're nuts.

MaDalton · 03-04-2010, 10:08 AM

Quote:

Originally Posted by Caligari

for 80 percent of the movies on hulu there are no rights to sell, they are public domain. if hulu is paying a dime for the majority of those movies they're nuts.

well, since Hulu does not allow me to see it I wouldnt know what is up there. ;)

i was just referring to the article and Comedy Central

Comedy Central has its own channel on TV here and they probably make money by selling advertising. but over here they are always behind with the shows cause they need to be dubbed first etc.
so who would watch the old stuff on Comedy Central here if you could watch the new stuff on Hulu for free?

03-04-2010, 01:55 AM	#2
starpimps Confirmed User Join Date: Sep 2006 Location: internets Posts: 6,954	good read thanks for the post __________________ Teen Porn Models / Solo Girls

03-04-2010, 02:02 AM	#3
luv$ !$!$!$!$!$!$!$!$!$!$ Join Date: Dec 2004 Location: Paper Street Posts: 6,158	dude your avatar looks JUST like an old buddy of mine who used to make bullets in the basement. Every time I see it I get tripped out lol __________________ Domain Auction - now till 12:01AM on the 2nd... Paper Streeeeeeeeeeeeeeeeeeeeeeeeeeeeeeet Cash The Real Workout - Innocent High - Oye Loca - Her Freshman Year - Solo Interviews - This Girl Sucks. ** HQ Fresh ORIGINAL sites.

03-04-2010, 05:04 AM	#6
EscortBiz Fuck Checks, CASH only! Join Date: May 2002 Location: New York City Posts: 19,422	its almost impossible to go from free to paid and not destroy everything, once you spoil the surfer you cant undo it. yahoo free mail to paud mail over 30 million accounts only 150 ended up paying) ny newsday over 400,000 hits daily, they spent 4 million to build their paid version only 35 ended up paying i can go on and on and you can argue that hulu is different, but its not, they will destroy it if they go paid, but its a business and not a charity and they must figure out a way to make money off it the ad model dont work as the CTR on these sites is a joke __________________ Spanking, Medical Fetish, Sleeping, Strap-on Anal Lesbians, Girls Fucking Guys, Handjob site REAL HOT, Shemales, Anal and Ass Licking sites 100% Real EXCLUSIVE with amazing retention, ccbill payouts, lots of content FREE FTP HOSTING Promote the largest and oldest member paid escort site, Converts 10 times better then any dating site, CCBill payouts ICQ# 158802076 Last edited by EscortBiz; 03-04-2010 at 05:07 AM..

03-04-2010, 05:49 AM	#8
GABScott Confirmed User Industry Role: Join Date: Sep 2008 Location: London UK. Posts: 111	Personally I believe the way is to maintain a basic free service with a pay for premium option, so say that the video is interrupted every 10 minutes with an ad, premium members get add free access and a higher quality stream plus the ability to save streams for offline viewing.... Free to end user for a basic product is here to stay but payment for premium features can and is already working in several market places. These services of course have to be priced right, there are price points that people will not even think about before making a purchase so say 99c an episode is nothing to most people, micropayments are the way forward. But hell what do I know, still people seem keen on these iphone app thingies at 99c a time..... __________________ ConvertAnywhere converting mobile traffic in emerging markets

03-04-2010, 06:19 AM	#10
halfpint GFY's Halfpint Industry Role: Join Date: Jun 2007 Location: UK Posts: 15,223	Cant view any of thier videos over here in the UK They should have gone world wide a long time ago and not restrict the viewing to certian countrys only __________________ Get FREE website listings on Cryptocoinshops.net

03-04-2010, 02:48 AM	#4
BIGTYMER Junior Achiever Industry Role: Join Date: Nov 2004 Location: Walled Garden Posts: 17,066	Viva FREE Hulu.

03-04-2010, 06:03 AM	#9
DWB Registered User Industry Role: Join Date: Jul 2003 Location: Encrypted. Access denied. Posts: 31,779	FREE as a long term business model just doesn't work. This will also apply to adult. Sooner or later, this model will die out.

03-04-2010, 06:40 AM	#13
Caligari Confirmed User Industry Role: Join Date: Oct 2009 Location: At The Mountains Of Madness Posts: 5,414	Hulu sucks anyway. They don't allow access in many other countries because i suppose they couldnt figure out how to merge international advertising....really weak. With the exception of a few, their movies are freaking awful bottom of the barrel crap thats typically out of copyright and the only thing they had going of interest were the comedy central clips, family guy, american dad etc. No one will pay for that imo __________________ ATTN Webmasters Cruel Bucks - LIVE Gonzo Does Not Pay ------------------------------------------------ Animal Rescue Click Here to Feed An Animal for Free

03-04-2010, 07:09 AM	#16
Voodoo ♥ ♦ ♣ ♠ Industry Role: Join Date: Sep 2002 Location: Porn Valley, CA Posts: 10,590	You can't sell "Free". __________________ "I'm selflessly supporting the common good, but only coincidentally looking out for No.1."

03-04-2010, 07:20 AM	#17
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	"Hulu has had trouble turning a profit because it doesn't pull in enough revenue to pay for operations. Online ads simply don't generate as much revenue as broadcast TV commercials." Hulu is applying the total cost of a production being paid for online vs through the tv, and saying it's not paying for operations. That's so lame.... they aren't saying Hulu isn't covering costs. Hulu makes them money.... it just doesn't make them the big money like tv broadcasts do. And that's a problem for them. If you people ever think 'free' is going away, you're going to be in for a very rude and sad awakening in about 20 years. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

03-04-2010, 08:50 AM	#21
czarina Webmaster Extraordinaire Industry Role: Join Date: Jul 2002 Location: A beautiful beach... Posts: 10,748	interesting article; it proves that free content is NOT worth it!

03-04-2010, 09:23 AM	#23
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	You guys are funny... knocking free as if it's a bad thing that failed. If anything, this is a great example of the free model working exactly like it should. You create a great product, get control of a huge market, then introduce a paid model. If you tried to do the paid model before mass attraction, it would have failed before the doors opened. __________________ ~TheDoc - ICQ7765825 It's all disambiguation