Online video site Hulu set up two years small harvest

Source: Internet
Author: User
Keywords Video site
Tags .mall advertising advertising fees advertising revenue application business business model company

Jeson Gillard, Hulu chief executive of the free online video site, said in an interview in Monday that Hulu has been in existence for two years and has achieved profits for two consecutive quarters and will launch a subscription service in the near future.

Hulu has successfully introduced online television into the mainstream, according to people involved. Now, in addition to being able to play on a computer screen, online TV has become a built-in application on the ipad.

However, Hulu's content providers complain of too much pressure, hoping Hulu will be able to earn more advertising fees, set up subscription services, and require customers to pay a monthly fee to watch some of the site's programs.

Girard is confident about the possibility of subscribing to a service. "Our mission is to find quality content in the world, and subscriptions can do that by providing sports, movies and paid TV," he said. As a complement to the ad-supported operating model, Hulu is sure to open a subscription service. ”

Hulu has 200 of its content providers, each charging Hulu 50% to 70% advertising revenue. While Hulu's traffic continues to climb, some media companies privately complain that revenues from ad-sharing agreements are too low. In the past year, Hulu has doubled its monthly online video traffic by three times times, according to comscore.

Viacom, a big client, withdrew its own program after a failure to negotiate advertising revenue Viacom with Hulu. In this way, Hulu users will not see the popular Comedy center TV show.

Girard pointed out that the company's latest profit margin showed that Hulu's business model was successful by collecting all types of video-free---for advertising sponsorship. He said the income of the Hulu2009 year turned three times times to $100 million trillion, a figure that could be achieved before this summer.

"The more video you have, the better it is for users, and it's easier to find, discover, and appreciate proprietary content," Girard said. The same is true for advertisers, after all, the more users, the better the advertising effect. ”

The partner's fear of revenue limits Hulu's services to third party devices and limits the company's satisfaction with the diverse needs of consumers, content providers and advertisers who love video.

For example, many consumers want to watch Hulu's show in the living room, and they have bought networked high-definition televisions, video game terminals and Blu-ray players. But Hulu has limited these services, as Boxee had intended to introduce Hulu into television, which would attract cable networks and satellite subscribers, a stable source of revenue for media companies.

Although users have been asking to develop apps for the iphone, Hulu has not yet developed it. News of the program's release has been circulating for a year. Mr. Girard said it was the result of the company's focus on the core of the Internet business.

A Hulu employee believes there is "a lot of bickering" to get permission to move content to other platforms. The employee was asked to be anonymous because he was not authorized by the company to speak on behalf of the website. It's similar to passing a health care reform bill in Congress, he said.

Boxee's chief executive, Avna Rohn Avner Ronen, said it would have to look for new sources of revenue before Hulu could get the permit.

Ron believes it's hard to have a universal business model, and media companies tend to trade more. Everyone realizes that the free content of advertising support now is not the exclusive model of the future, it is just a part of it.

On every platform, Hulu is at best a window on TV and movie content. That is to say, after these shows appear on the screen, you have to wait a while to play the contents of the program. Viewers may find it more time to watch for free.

Mr Girard admits Hulu has not done enough in the past to explain windows to its users. He explains Hulu's plight on Fox's website, "The Eternal Sunshine of Philadelphia" (hereinafter referred to as "Sunshine"). The first window of the "Sunshine" is in the cable TV network, and the cable network relies on the subscription fee paid by the user. Later windows include online traffic websites, DVDs and syndicates. Hulu shows that in the past few seasons of "Sunshine", only five episodes have been scrolling at any time.

If Hulu can earn more ad revenue from one hours of viewing, the world's Fox fans may be uploading more programs to the site. Some of Hulu's programs now have more advertising time than ever before, and its partners want to increase the number of ads aired on 1-hour programs. But Mr Rahl still believes in "less is more" and cites a study that could prove the benefits of Hulu's advertising.

Because of the changing media business, Hulu's problems cannot be completely lost. Later this year, regulators agreed that NBC's stake in Hulu would shift to its new parent, the cable giant Comcast, which is one of the companies seeking to maintain the television subscription model.

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