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Charging fees for Hulu comes with its own problems
Hulu's days as a free online video site could be ending soon.
by lilhurricane Thursday 04-Mar-2010
By DEBORAH YAO

Comedy Central's decision to yank two of the most popular shows on Hulu — "The Daily Show" and "The Colbert Report" — in a dispute over splitting ad revenue is the latest blow to the entertainment industry's attempts to make money off ads that run with free video.

Yet Hulu's most viable alternative — charging for access to some videos — could turn off viewers and crimp the site's explosive growth. Ultimately, the remedy to Hulu's current troubles could leave the site even worse off, a poor shadow of its former self.

Many viewers are drawn to Hulu because of its ease of use, not because they couldn't get much of the same content elsewhere. Hulu's videos simply aren't exclusive enough — compared with, say, Time Warner Inc.'s premium HBO cable channel.

If Hulu charges for a TV show or movie, the viewer could simply watch it over the air live, be more consistent about recording it to view later or catch the program for free through a video-on-demand service offered by cable TV and other providers.

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