Ramsland+Strategy+Report



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Hulu emerged in March of 2007 and quickly took hold of the TV streaming market. The companies driving factor in the market is existing competition, primarily in the form of Apple TV and Netflix. If Hulu can maintain its audience and remain a free service it will undoubtedly rise to the top of this market.======

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Hulu is a corporately owned website used for the streaming of TV and movies. It emerged in March of 2007 with Jason Kiliar named as its CEO but was not made public until August of 2008. It is a joint collaboration of three major studios, those being: NBC Universal, ABC Inc (The Walt Disney Corp) and Fox Entertainment Group. Essentially Hulu provides a combined database of high quality videos, offered in both 360p and 480p. All three networks are represented on the website as well as many other notable programs and movies. The company is also funded, in part, by Providence Equity Partners, who invested 100 million into the project and have a 10% stake in the venture.======

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The primary income of this company is based on play time adds. Essentially, while the viewer is watching they watch mandatory ‘commercials’ for several minutes per half hour of programming. This innovative approach to marketing and profiteering keeps Hulu free to the public at the small cost of a few minutes of commercials. This is one of the major selling points of the website.======

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The business landscape of online video content is relatively new to the technology scene. As it appears now Hulu has now major competition for online TV streaming its competitors include Apple TV and Netflix but neither are showing the tremendous growth that Hulu is enjoying. Hulu is also rapidly taking its place among major outlets for video in general. In January of 2010 it was reported to be in third place, slightly behind but quickly gaining ground on MySpace and YouTube.======

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Despite the booming success Hulu is showing it is not turning a profit like its designers would like. It was stated by the companies Deputy Chariman that the company will need to develop its business model to a subscription based scheme in the near future.======

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While this will turn more profit for the associated partners of the website, this change to subscriptions will drive away many long time Hulu users who enjoy the free commercial based scheme that now exists. By becoming subscription based Hulu will lose its edge over Apple TV and Netflix and make the market a more even match.======

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This new agenda for Hulu will be interesting to watch. Undoubtedly the market share of Hulu will plummet when the business model switches over to subscriptions. The fact that remains to be seen is whether the entire site will be subscription based or if only parts will be and further more if Hulu will be able to maintain market dominance with this scheme. Gen-Y participation the site will no doubt wane.======