As a site that first publicly debuted in 2008, Hulu has come a long way. Currently, it is one of few sites in the online media space that has grown at a rapid pace. And, with 3 good reasons — premium content, great interface and an excellent infrastructure.
Currently, Hulu provides content from 3 major broadcast networks — Fox, NBC, and Disney. And, it has deals with cable networks, such as USA. (USA is owned by NBC Universal).
So, why is Hulu important in 2010? Because, this is the year where business models have to be defined. Companies — regardless of their size have created elaborate platforms and expensive content. However, such content producers still rely on CPM based advertising to cover their costs. When a piece of content costs $200,000 to create, how can content producers justify releasing it for free on the web?
Recently, there have been rumors that Hulu will start charging for content. And, I support this model. If Hulu does start charging in 2010, others will try. Combine that with ‘TV Everywhere’ and instantaneously, you have a true multi-platform business. In this scenario, if you pay for cable, you pay a very minimal fee for online access (<$2.00 per month). If you don’t pay for cable, you pay a larger fee for access (~$10.00).
Now, integrating ‘TV Everywhere’ with Hulu is still a long shot, but it is possible and may happen in the next few years. In the interim, Hulu will continue to release new features that will make a ‘digital living-room’ a reality.
