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Hulu May Start Charging In 2010
'Time to get paid,' declares News Corp, NBC execs...
"It’s time to start getting paid for broadcast content online," proclaims News Corp. Deputy Chairman Chase Carey, who this week indicated that Hulu would probably start charging for access in 2010. Of course Hulu's fate may not be in Carey's hands but with Comcast, who's looking to merge with Hulu owner NBC Universal. That merger could result in Comcast taking action that's aimed at protecting Comcast TV revenues, not making Hulu work better. For now though, Carey believes that charging users will help them "appreciate the value" of content:
quote:
The strategy needs to be more than just fighting piracy and Google, he says. "I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value," Carey said. "Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business."
NBC Universal's TV chief, Marc Graboff unsurprisingly agrees, and is also arbitrarily declaring that it's time to make more dough, in any way possible. That includes more advertisements or a subscription model:
quote:
"Now the trick is ... to turn those digital pennies into digital dollars," Graboff said at the Digital Hollywood conference in Santa Monica. "Hulu has got to bolster its economics. I know they're looking at any number of things, like adding inventory (more advertising) or creating a subscription model with different windows."
Of course whether it's "time to get paid" or not isn't really in Carey or Graboff's control. However unpleasant for entertainment industry executives it may be, they're competing not only with other online video services, but with piracy. That competition, not executive desire, dictates what Hulu can get away with. You don't compete with free and easy by offering expensive services with limited selection and ever-increasing ads -- all hidden behind restrictive pay walls. Hulu will need to tread carefully.

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Re: Hulu To Start Charging In 2010

It's better be ad free.