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Aanarav Sareen

Aanarav Sareen

Posted: June 29, 2010 01:58 PM

Hulu Announces Hulu Plus

What's Your Reaction:
Read More: Hulu , Online Video , Media News

2010-06-29-20100629_huluplus.gif


After much anticipation and rumors, Hulu officially announced Hulu Plus. Priced at $9.99 per month, it offers 3 distinctive benefits:

  • Ability to watch content beyond the computer screen -- mobile devices and TVs.
  • Access to a wider library of content -- back seasons and entire seasons.
  • Higher quality content.
For paying subscribers, this means greater access to some of the best available content.

However, it also means ads. Hulu Plus is

a new, revolutionary ad-supported subscription product that is incremental and complementary to the existing Hulu service. For almost all of the current broadcast shows on our service, Hulu Plus offers the full season. Every single episode of the current season will be available, not just a handful of trailing episodes.

Almost a year ago, I'd said that Hulu should launch a paid model. The predicted price point was accurate and most of the features were accurate as well.

However, concerns still remain:

  • Advertising: Charging 10/month is fairly high when you have to watch ads.
  • Content: Like Netflix, Hulu's streaming library is not extensive.
  • Revenue: Based on rough estimates, each studio will end up getting roughly 1/subscriber.

While the above are fairly minor concerns and could be fixed by content creators and Hulu, the largest concern is consumer adaption. For the first time, consumers have the ability to view content digitally via a subscription model. If someone is used to purchasing individual seasons on services like iTunes or Amazon Video-On-Demand, this is a great solution. For those who watch content for free, the price might be a stumbling block.

Hulu will continue to tweak the service and it'll be interesting to see how many people sign-up for the paid subscription. (prediction: 100,000 people by 2010)

It'll also be interesting to see if the free product is made available to mobile devices.


***

Aanarav Sareen is a content creator and digital media consultant. He blogs daily at Digital Media Business and publishes the monthly Digital Media Newsletter. He's also the host of the weekly Digital Media Podcast.

 

Follow Aanarav Sareen on Twitter: www.twitter.com/aanaravs

 
 
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HUFFPOST SUPER USER
jennyjen
01:27 PM on 06/30/2010
$10 per month in addition to netflix, cable tv and internet costs is too much.

They are shooting themselves in the foot.
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HUFFPOST SUPER USER
twhiting9275
My micro-bio. Totally unrelated to microbiology!
07:47 PM on 06/30/2010
Really, you know this from experience how?
They're NOT cutting off free service, they'll still have it.

They ARE expanding it and adding full seasons for most of their shows, and back seasons for some, all in a PAID subscription model.

Sites like this don't run for free. To imagine that they do is, well, ludicrous . They currently have to PAY networks to run their shows in most cases, and then forfeit any ad revenue to the same networks, as the actors, etc, must be paid on a per view basis.

This + model actually WORKS to generate them revenue so they can expand their library. Seems to me that it works pretty well for everyone involved! Don't like it? Don't subscribe, but don't complain about them charging a very nominal fee for their product, because it is very much worth it!
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sb250guy
A Cunning Linguist
08:52 AM on 06/30/2010
Though I bristle at the idea of paying for entertainment, I have one question. Does anybody know if this will be available outside the US? As I live in Japan and cannot currently use Hulu, I would consider it as a replacement for my TV (which I never watch). Japanese TV is even worse than American TV. We only have one because my wife and mother in law watch it. $9.99 per month might be worth it.
09:38 AM on 06/30/2010
Hulu hasn't announced anything publicly. My guess is that it won't be available outside the US due to licensing reasons.
09:48 PM on 06/29/2010
Hulu wants to charge what amounts to $120 per year for its content? No way. You can get TV over the Internet from a program like seetvpc (dot) com. Have used it for a couple years, and once you have it, they don't charge for content - unlike hulu. What is hulu thinking?
09:47 PM on 06/29/2010
Hulu wants to charge what amounts to $120 per year for its content? No way. You can get TV over the Internet from a program like seetvpc.com. Have used it for a couple years, and once you have it, they don't charge for content - unlike hulu. What is hulu thinking?
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aspertame2
My other avatar is a sparkly rainbow care-bear
12:49 AM on 06/30/2010
I do think it is both fair and relevant to mention that "JenniferWeb" has posted only 7 comments since becoming a HuffP user this month, and 5 of those have plugged the seetvpc.com service. My opinion is that a software seller who has no phone/physical address info linked to on its homepage, that is apparently unknown to the Better Business bureau, and that has no internet "footprint" (independent reviews on reputable or in this case really *any* software review sites) despite purportedly having been around since 2004 -- has it changed it's website name or address repeatedly, maybe? -- that is a seller to be wary of.
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mommadona
I paint. I blog. Therefore, I am.
07:51 PM on 06/29/2010
It didn't work for XM/Sirus ~ "I remember when" cable TV ran ads on regular TV stating "Just think! You'll NEVER watch a COMMERCIAL ever again!" ~ fact
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mjredder
04:41 PM on 06/29/2010
The TV model is failing, and there is not a good replacement yet. Until I can pay for TV without commercials or get free TV with them, I'm not signing up. Pay to watch commercials? That's the kind of idiocy that keeps cable and satellite companies going.
04:57 PM on 06/29/2010
Completely agreed. People pay $9 for Netflix and have access to more devices, more (long form) content and no ads.
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twhiting9275
My micro-bio. Totally unrelated to microbiology!
05:31 PM on 06/29/2010
You'll never see see 'commercial free' public TV, even when paying a fee. Why? Because each view of the product (even if only partial) is still required to be paid for. A $10/month model for increased library alone is fully worth it. Don't judge the model based on what they have (for free), but based on what they have fully!

$10/month is really nothing, honestly, and hulu actually cuts the ads down quite a bit as opposed to watching them on public TV
09:40 AM on 06/30/2010
Good point. People (including myself) pay for TV and we still see ads.