Studying Hulu's success
Posted by Emily Dilling on July 13, 2009 at 9:52 AM
In a recent New York Times technology article, Saul Hansell analyses the unlikely success of online video site Hulu. Hansell attributes the site's healthy growth and survival amidst the global economic crisis to the fact that the site takes advantage of a gap in the market that is not covered by YouTube or any other video site, as it offers network television series on the Web, as opposed to user-generated content.
Hulu is also interesting to networks because it offers a secondary portal to their content, aside from their main site.
Hulu is also interesting to networks because it offers a secondary portal to their content, aside from their main site.
"Hulu has proved that there is value in having a portal for video,"
Hansell wrote, making the video site an impressive business model and
an interesting option for television networks.
Founded in March 2007, Hulu doesn't "have a weak spot that could be exploited by a newcomer, as Kazaa and Skype did in their industries," because putting TV shows on the Internet isn't disruptive. On television, TV shows are free, and paid for by ads. Online, if an ad shows up in television video, it's nothing new, and therefore not disruptive, Hansell points out.
Founded in March 2007, Hulu doesn't "have a weak spot that could be exploited by a newcomer, as Kazaa and Skype did in their industries," because putting TV shows on the Internet isn't disruptive. On television, TV shows are free, and paid for by ads. Online, if an ad shows up in television video, it's nothing new, and therefore not disruptive, Hansell points out.
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