Since its launch in March of 2008, Hulu has aggregated premium content, and then offered it to viewers free of charge. In exchange for watching a few, short ads, viewers receive great TV shows, movies, and documentaries for nothing. Nada, Nichts.
Revenue from Hulu’s current model of ad-supported streaming video doesn’t compare, however, to the advertising revenues its broadcast TV cousins enjoy, and that has Hulu executives suffering a little ad revenue envy. Hulu, a joint venture between GE, News Corp and Walt Disney, is now considering a drastic change to its business model in order to better monetize the company.
While Hulu execs huddle to discuss whether to go with pay-per-view charges or a monthly subscription fee, some members of the company’s loyal (and former TV) audience are threatening to jump ship, bristling at the notion of having to pay for what is now free. They underscore their outrage by pointing out that advertising already supports the content, so to add any other fees would be just plain wrong.
All of the jostling, maneuvering and hand wringing that entertainment producers and distributors are going through makes me wonder if the advertising industry isn’t experiencing its own economic adjustment. Maybe the days of ads that bring in $3 million dollars for 30 seconds, as this year’s Super Bowl ads are expected to do, are limited. Maybe, like all of us, the shareholders of Hulu, and their advertising brethren, are going to have to be happy with less gold lining their pockets.
According to comScore.com, the average U.S. viewer now watches more than 5.5 hours of online video in a month, and that number continues to grow. The audience migration from broadcast TV to the online video market is certainly a symptom of technological disruption, but it may also one day, in retrospect, mark the beginning of the decline in advertising revenues for the entertainment content creators and distributors.
Hulu can try to fight the reality of an audience that expects free, and will go to great digital lengths to get it, but in the words of Disney’s CEO, Bob Iger, “You can’t slow the pace of technology.”



The New York Times. Four little words with such big meaning. Smart. Lengthy. Investigative. Incisive. Print. Paper. Irrelevant?
Technology offers a huge array of digital tools for today’s communicator. New devices. Slick platforms. Technological slight-of-hand. The real trick, however, seems to be in knowing which tool to use to do your communicating. Gary Vaynerchuk, host of
Some people play “20 Questions” in the car. Others listen to NPR. My favorite thing to do while zipping down the freeway is to try and save journalism. In this endeavor, I rack my brain, trying to figure out what kind of monetization model will protect the investigative journalism that has, for decades, kept our country (and our constitution) intact. Free may be the reigning model in regards to information, but not all Free information is created equal.
I have always been interested in trend spotting, the kind that goes on in the streets of our country’s biggest cities by corporate scouts looking for the latest craze. In this arena, professional spotters go hang out in economically depressed neighborhoods to see what new fashions are emerging on the backs and feet of the nation’s poorest kids. The kind of poverty in which these kids live seems to forge unique creativity and self-expression, which makes its way into rap and hip-hop, and then translates into tomorrow’s fashion.

