Bob Iger: Hulu Could Charge For Content, People Will Pay Online

PASADENA, Calif. — Walt Disney Co. Chief Executive Bob Iger said Wednesday the Hulu online video streaming site that it now co-owns could one day charge for its content instead of just offering free streams and selling advertising.

"There's plenty of room for people to spend money on things they're doing online," Iger told a technology conference put on by Fortune magazine.

He cited statistics that showed how much people are willing to pay for media content: $5 an hour to watch movies, 75 cents an hour reading books, magazines, and newspapers and 25 cents for every hour of Internet use.

"We have ample evidence both in traditional media and in new media that people are willing to pay for quality, they're willing to pay for choice, they're willing to pay for convenience," Iger said.

"It's possible that Hulu will look at monetizing as well. It may be not just selling ads," he said.

Disney took just over a 25 percent equity stake in the Hulu joint venture in April, joining its founders, NBC Universal and News Corp., and agreed to provide TV shows and movies to the site.

Iger added that Disney was working on a Disney-branded site that would make available movies, TV shows and games to consumers who pay for a subscription, but wouldn't reveal details.

The company reports its third-quarter earnings on July 30.

Comments

[jbbrandes]

No Way to Pay! I got rid of my cable TV because I got tired of paqying to watch commercials. Cable was supposed to be commercial free, pay for service. What Disney is talking about is nothing less than what drug pushers do to hook people, they give out the stuff for free, and when the addict is hooked they start charging, The banks did the same thing, they brought in ATMs saying that it would make access to our nmoney easier and save operating costs because they could cut back on tellers. Then when they got rid of the tellers and had us hooked, they started charging fees for use.

With this plan Disney is acting like a drug pusher. Me, my Disney stock, and I, will say no.

[ardethbay]

Alot of people will just go to sites that are still free, and sooner or later the sites will shut down, as they won't make enough money for a corperate bean counter. Granted, they will make some money, but not the amount they are invisioning.

[erincnyc]

Nope.

[Goosed]

British comedian Ricky Gervais had the most popular podcast on the internet. It started free. He did a poll, and the majority of listeners said they would pay $2 a podcast. Once he started charging, his audience shrunk by over 95%.

There is a large discrepancy between between what people say they will pay for, and what people actually will pay for. And it's been show time and time again by the dozen or so popular companies which tanked after they started charging.

[imsosure]

Mr. Iger I for one will not pay for content, it's why HULU is a great place, no fee.

[nyc-girl]

If that happens it will be another AMAZING CONCEPT destroyed by greedy corporate MORONS!! (I still can't believe these idiots get paid MILLIONS per year!!) I LOVE HULU!! And I have Premium Cable. It's just amazingly convenient to have my favorite shows automatically sent to my queue and watch it whenever & ESPECIALLY WHEREVER I want - as long as I have internet connection. I haven’t missed “The Daily Show” in a year!!

It’s also a great medium to try new shows. I RARELY watch basic TV after the “reality shows” took over. This week I selected an episode of “Castle” as ambient noise while working on my laptop. I was so intrigued by the dialogue I actually watched couple of episodes of “Castle” - and I’m now hooked. I’ll probably watch it next season.

I am an AVID fan of Hulu!! Would I pay for this convenience?? NOT A DIME!!

[kapalabhati]

Fine, then people won't watch.

[RaderBarbarian]

Hulu? Hulu? I have never even heard of Hulu, and I watch videos all the time! And some clown thinks I will pay for something I've never heard of? Oh, somehow I suspect I am going to be able to avoid paying for something I have never even heard of - unless they can figure out my password to my bank account.

[Blurp]

FYI Bob, I won't pay.

[tapley]

Not me. I will stop going there.

[rdown1308]

I will not pay for it, I wonder where they really get their facts from?

[Nebris]

No we won't.

[KoolAidAmerica]

In an age when welfare queens expect the govt to take care of their babies food and health while they sleep with a dozen men people are going to pay for online content. Online everything is free stuff.

[sheriwriter]

What focus groups is he listening to?

[idealskeptic]

I adore Hulu. When I found it, I was certain that free videos were far too good to be true. I was actually excited when Disney/ABC signed on, though I would have prefered CBS. How wrong I was. When Hulu charges me to watch, I quit.