Hulu is clearly freaking out or is under immense pressure from their parent broadcast companies to start pulling their content from partner sites.
(BTW what happens when the JV is over? Do you call it just hu? or lu?)
So what's up with hulu actin' up?
For one, their CPMs are much higher on their controlled environment within hulu.com, vs. a syndicated model where the advertiser is unsure where their content is being seen.
Secondly, companies that make seamless transitions of online content to your TV threaten ratings of those actual shows over broadcast, which in turn, lowers the level of ad revenue collected. And let's all face it - Digital Media ad spend is still a FRACTION of what it is for broadcast and cable networks.
Thirdly, hulu may find that their content is so powerful that should new startups want to actually do something with them, they need to pay hulu, as we all know advertising revenue alone is not going to be the best business model throughout this tough (and hopefully not long) recession. (Ahhh, make that money - and not ad money!).
My recommendation, though, is that hulu maintain its fanbase through partner sites...for now. People want to consume content where they want to when they want to. If you are not there, you'd better hope people take the extra effort to find your stuff. Hulu is probably finding that it may be too tough to fight back against NBC and Fox, but let's hope that they further embrace new technologies and other sites rather than start building a walled garden approach to their content.
What are your thoughts? Don't you think as a consumer you just want to access your desired content in the easiest and most convenient way?
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