The Wall Street Journal reports that Hulu’s owners are considering the creation of a “virtual cable operator”. Digital technology and the internet are changing media as we know it, and consequently people’s viewing patterns and habits are also changing. Consumers want to decide for themselves what they watch and what they consider good enough to watch. Enter: today’s streaming internet-based media services.
Hulu is a well-known online video service that offers free TV shows with ads. With consumer behavior changing, Hulu is left in an awkward situation. Starting in 2007, Hulu has worked to increase their audience, making money by selling advertising. This manner of building up business does not sit well with Hulu owners NBC Universal, News Corp., and Walt Disney Co., who are worried about making a profit. Competition from companies such as Netflix Inc., Apple Inc., and Microsoft Corp., as well as from Hulu’s own free service model, puts intense pressure on Hulu and its owners to keep their business plan lucrative. In light of this dilemma, Hulu may transform itself into an online cable operator that provides subscriptions, offering live TV shows and video on demand content through the Web.
In the meantime, NBC Universal is being forced to relinquish its Hulu management rights, in accordance with the government conditions of its takeover by Comcast Corp. And News Corp. and Disney are deciding whether to make Hulu wait at least two weeks for exclusive new content. Showing their apprehension, they have already signed deals to license their content to Netflix. Is this another sign of the rumored demise of Hulu?
Please make sure to read our comment policy before posting a comment.