Are Content Providers Slowly Killing Hulu? - By: Paddy Chang

After a period of dominance, the once mighty Hulu is looking fragile. The website is still not fashioning money and is now facing the scourge of losing premium issue as providers decide to do their own subject. The decision by Viacom to get rid of two very popular shows from the Hulu schedule shows that the real Mogul is with the networks, and that Hulu on its own is minuscule more than a shop windowpane.

Is Hulu reaching its sell by date?
The Viacom episode just enforces to Hulu what the networks have been slowly doing to the live internet tv website. Slowly getting more stringent with what they allow Hulu to show, removing some shows and allowing fewer episodes to be streamed online. Gene Liebel, of digital ad agency Huge said:- “You pay more for niche audiences and targeted networks than on generalized sites like Hulu. Hulu charges less for the ads, so Viacom’s gross revenue people are out there being undercut by their own content.”

It seems that Hulu has served its design, launched initially to try and cut down on the rampant online piracy by providing the content for free online. So popular has the site been that it can now prayer over 44 million viewers every month. But now that Hulu has achieved these goals the providers now dont want to share so much gross with Hulu.

Arash Amel of Screen Digest commented:- “It was a very interesting platform when it launched, but in terms of excogitation it’s going to be very intriguing. The other big media content partners who aren’t the main three backers have woken up to the fact that they can probably do it themselves. You will see some of the bigger brands pulling back and say, ‘We’re going to make our own versions of a mini-Hulu and license the player instead of giving you the content,’ ” said Amel.

Hulu currently hosts the shows and sells the ads giving a 70% cut of revenue to the providers while pocketing the remaining 30%. If Hulu were to cut its take it would be similar to commiting Hari-Kari as it still cannot make a profit currently. So what does Hulu do? It may have to become more of a media platform, allowing the providers to embed their own video players on the site and have control of the advertising.

Of course Hulu is still planning to roll out a subscription service and charge for premium content, yet, the initial aim of reducing piracy will be negated by this fulfill. One thing is for sure, the Hulu you see (if it still exists) in a few months will be a very unlike animal.

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