Ahhh, Hulu. That wonderful destination where I can re-acquaint myself with my favorite Justin-Timberlake-on-SNL moments, catch up on episodes of Greek, and search for those old Silver Spoons clips I remember so fondly. The two-year-old website is a joint venture between Walt Disney's (DIS) ABC Network, General Electric's (GE) NBC Universal division, and News Corp.'s (NWS) FOX Entertainment Group, and is partially funded by Providence Equity Partners.
But just as online news readers may soon be charged to access The New York Times online, we may have to open our wallets for certain corners of the Hulu universe (they will likely still let me watch Silver Spoons for free).
Reportedly, Hulu will start its for-pay model slowly, charging just for episodes of 30 Rock, House, and Modern Family. Now, these shows are on network television: NBC, FOX and ABC, respectively. In other words, these programs are free to watch anyway (assuming the presence of a television set), even for people who don't pay for cable service.
Another proposed plan would allow Hulu users to watch the five most recent episodes of a program but require a monthly subscription (at $4.99 a pop) to watch older episodes. Hulu executives recognize that in order to make subscriptions attractive, they would need to offer at least 20 TV series in their entirely. Five bucks per month is much cheaper than a cable bill, for people who want to get their fill of basic-cable fare (Mad Men! Damages!) over their laptops.
Would you pay 60 bucks a year for less-limited Hulu service? Do any of you out there watch "TV" exclusively on your computer? Give us a shout in the comments.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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Reader Comments (Page 1 of 4)
2-01-2010 @ 3:31PM
e.krabs said...
Perhaps another way to look at this issue is, "What is the competition doing?"
YouTube is monetizing theirs soon, but unlike Hulu, I believe they have more options available to them because they allow the community to upload their own content, whereas Hulu does not have such a service.
Apple iTunes provides superior integration with iPod and pricing was great at the time.
Netflix already offers many premium content at a flat monthly rate.
Traditional cable and satellite is still the only method to get true 1080p HD, and some, especially sports fans, will still take this route....
So, when you look at it that way, the only relative certainty, it seems, is that it's going to be an up-hill battle for Hulu once they start the attempt to monetize it. I don't see the "wide moat" here.
2-01-2010 @ 7:41PM
Doug said...
I fired my satellite company and gave away my TV's and watch exclusively on Hulu and another site that offers a wider selection. I believe that if I had to pay a few bucks per month for the same content that is now available, I would. It is still a huge value over cable or satellite.
2-02-2010 @ 6:42AM
fryeguy5231977 said...
another bill for americans to pay which most can't afford.
2-02-2010 @ 7:12AM
TATRODDER said...
I SAID IT ONCE, I'LL SAY IT AGAIN : THEY CHARGE, I CANCEL.
2-02-2010 @ 7:06AM
Robin said...
Being unemployed, money is really tight! I can't afford to watch my tv, so yes, I watch my computer, exclusively. I pay for my internet. I do love Hulu, but I can't afford another bill! I think, that if Hulu goes on a payment plan, someone else will pick up the "free" slack. And why pay for something that you can get for free?
2-02-2010 @ 7:09AM
rhonda said...
Crazy! don't they know there are 4,000 other sites to watch anythinngyouu want for free? they make it a pay site and i wont be back.
2-02-2010 @ 7:18AM
Smart Choice said...
MAKE YOUR VOICE KNOWN!!!! Why is everyone over looking one thing.... commericals pay for the networks to broadcat your favorite TV shows. ARE COMMERICALS GOING AWAY? WILL THE NETWORKS DO AWAY WITH COMMERICALS? The whole world has gotton so GREEDY that the internet is designed today to nickle and dime the public into bankruptacy.
2-02-2010 @ 7:22AM
Smart Choice said...
You PAY the internet provider to stream the interenet. Who has the right to charge you twice to stream a TV show. Its different with Netflix or Blockbuster. They offer commerical free streaming for a low price with new released movies. HULU DOES NOT OFFER SUCH A PLAN.
2-02-2010 @ 7:22AM
Smart Choice said...
MAKE YOUR VOICE KNOWN!!!! Why is everyone over looking one thing.... commericals pay for the networks to broadcat your favorite TV shows. ARE COMMERICALS GOING AWAY? WILL THE NETWORKS DO AWAY WITH COMMERICALS? The whole world has gotton so GREEDY that the internet is designed today to nickle and dime the public into bankruptacy.
2-02-2010 @ 7:50AM
Victor said...
I haven't had pay TV for 5 years. The only time I miss it is during college football season. Lots of good things to do besides TV.
2-02-2010 @ 7:52AM
Warren Ward said...
Since they play commercials, does this mean the commercials will go away if you pay? Probably not, like XM radio. You pay a fee, but they play endless commercials anyway...
Free TV for $5 a month? Free?
2-02-2010 @ 8:20AM
debtrow said...
why do we have to pay twice. stop ruining good things. i will find another site if hulu starts charging. and i love hulu.
2-02-2010 @ 8:08AM
famediver said...
Hulu sucks anyway. Never have the shows I am looking for! Next year almost all networks will show programing via live feed anyway. Thats a great idea, charge and drive what little customers you have away as others are coming into the market for free.
2-02-2010 @ 8:30AM
Anne S said...
Well, Directv now offers 150 channels for $29.99/mo. plus another $5 for DVR service. Dish Network has 120 channels for $24.99. That's cheaper than Hulu, it seems! I use Hulu everyday and subscribe to Netflix. I will not, however, pay for Hulu. I will go back to DVR-ing and keep my Netflix.
I would be willing to view more ads to keep Hulu free. My concern is that one will no longer be able to go to ABC, NBC, CBS.com (etc) and view the shows we like for free. Instead, we'll have to pay for the shows at Hulu. If we *can* view the shows at the network sites for free, what's the point of paying?
2-02-2010 @ 8:30AM
Barbara said...
I agree, THEY CHARGE, I CANCEL. There are always new sites that will take their place give you a place to watch your favorite shows for FREE. Thank goodness for the internet! I feel the same way about PANDORA, NEW YORK TIMES and all the rest. Hell, I might even go out and buy a newspaper! Old School!
2-02-2010 @ 8:31AM
MrDoughnut said...
I have Cable TV and I can also hook up to Rabbit ears with a converter if need be.
So take your greedy little stank ho arses back to the drawing board!
2-02-2010 @ 8:38AM
Anne S said...
I should add with regard to my comment about satellite being cheaper than Hulu... monthly it may not be, however, the rumors are that Hulu will also offer other monthly plans that will include other content commercial-free, premium movies and recent movies at various subscription pricing. If you just want basic cable fare the $5 a month may be worth it, however, if the shows you want are not included in the 20 that are in the $5 package, you will have to add other shows to your subscription for more money, including older series. To get the content you are used to viewing on Hulu you *could* be paying the same as satellite.
The other thing to consider is the TV business is not necessarily about the show content! It's all about ad dollars. If they get a hit (see Modern Family, for example) that's a bonus. That means being able to charge higher ad dollars. Offering that show for free on Hulu severely cuts into their ad dollar revenue and commercial viewership.
If they had a half a brain, they'd keep the same commercials and same commercial length and offer it up on Hulu as-is. If you want it for free, you have to watch the commercials, period. If you want limited ads or no ads, you pay. Wouldn't that be a better solution - at least for the networks. (Not for the consumer, I get that).
2-02-2010 @ 8:41AM
KC MacLeod said...
It would be one thing if Hulu offered the same type of services as Netflix, but they do not. Netflix has a vastly superior library for online content as well as "to your door" rental. If Hulu wants to justify charging it's content then they need to actually become some kind of competition, otherwise, Hulu will not have much of a site left. Hulu became popular because they were free, Netflix became popular because they were good. Get the message, Hulu?
2-02-2010 @ 8:43AM
Cooper said...
Watching TV on my computer just doesn't add up. I'm paying the cable company to be my ISP anyway and it's only a few dollars more per month to get the TV service. So, it's not like I could really just cut the cable bill out of the loop. . . I have to pay the cable company to get on the Internet unless I want to go back to dial up or satellite. Why would I want to watch TV on a 20" monitor when I can watch it on my TV?
2-02-2010 @ 8:48AM
michael said...
I think the fact that hulu is mainly a novelty due to the fact that it is FREE. ONCE it loses that status and becomes just another "for fee" entity it will probably lose alot of it's fan base. Too many options still that are free.