At an industry summit in NYC on Oct. 21, News Corp Deputy Chairman Chase Carey revealed that online video hub Hulu will begin charging users for content as soon as 2010, according to Broadcasting and Cable. Carey told reporters that a subscription system is likely, although some content will probably continue to be offered free of charge. “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,” he said. (via)

I understand why Hulu is looking for new ways to monetize, but I don’t understand how anyone who works there could actually think a subscription program is the way to go about it.  It’s possible, though improbable, that Hulu could find success creating some sort of premium membership program without ads, with additional content, or whatever - but trying to restrict the product as it stands now, the same product to which people have spent more than two years acclimating, is ridiculous.

I would go so far as to say that Hulu’s ENTIRE appeal is rooted in its price-point (zero dollars).  Yes, it’s nice to stream instead of download and yes, the picture quality is quite good.  But those are only minor conveniences.  Hulu is based on making money by being a comparable and legal alternative to internet piracy.  If it’s no longer free, it’s no longer comparable and I strongly believe their audience base will disintegrate.

1. megalong liked this
2. nerdgasms liked this
3. rhymeswithemma posted this