Last updated 10/10/13 - Please email or post for an update.
Hulu.com was never created for an IPO or profitability. It was designed to change the TV/Cable viewing habits of millions of Americans, and it succeeded.
In 2007, we were all blown away by a new tv streaming website called Hulu. We quickly fell in love with this website. The videos streamed almost endless content and we were able to watch any show in the past 20 years with no ads!
Hulu is and was a joint venture between NBCUniversal Television Group (Comcast), Fox Broadcasting Company (21st Century Fox) and Disney–ABC Television Group (The Walt Disney Company) [Wikipedia]. The streaming website was created to solve a problem. I will elucidate the problem but first, let's go back to 2007.
In 2007; YouTube was the rage, torrent websites were out of control (Kim Dot-Com) and network and cable content providers were wondering how they were going to make any money from the new cost-free distribution program - i.e. the Internet.
Let's back up some more. In 2006, every network and cable provider could read the writing on the wall and knew that the Internet was going to wreak havoc on their ad revenue. So in late 2006, major network players came together in Florida and decided on a remarkably smart idea. They decided to put all of their content together online and see if they could find out how to make revenue on their shows.
These network competitors, and I mean COMPETITORS, signed an agreement providing their content for one website. (This is unheard of and I'll go into it if you like, suffice it to say, it's like Coke and Pepsi joining up and making one soda for Mars.) In 2007, Jason Kilar, a young bright Harvard MBA, was recruited to run the streaming startup. They named the service Hulu and launched it in 2007.
The purpose of this start-up was to figure out how to to take TV and cable shows, place them online and make ad revenue. Kilar was the key driver at Hulu and made a lot of intuitive decisions that we see in all streaming websites today. Kilar was aware of the purpose of Hulu and the sale of Hulu was never in the cards or its purpose.
The purpose of Hulu was to get viewers used to watching tv shows online. Hulu did this by offering every tv show known to man with no ads. They couldn't do this forever, but that was part of the plan.
In 2010, Hulu "complained" about their "lackluster" earnings and added ads to their content. They also began Hulu Plus which promised "ad-free" viewing for $8/month. (Hulu Plus now only provides newly released episodes, ad displays are identical to the free Hulu.)
For the next four years Hulu does what it set out to do, get American viewers addicted to watching TV shows online. Why you ask? Imagine the cost savings if TV operators didn't have to maintain and broadcast TV signals from hundreds of TV antennas across the nation. Imagine the cost savings if TV viewers all paid for TV access (you did this by paying for internet in your home). Imagine the cost savings if cable channels did not have to pay the cable providers for distribution -that's right, TV/Cable Execs were hoping to free themselves of TimeWarner, Charter, and other cable companies - and their fees.
Now you start to see the vision that the network execs saw in 2006. By creating a free service, providing unlimited content and then slowly, ever so slowly, weaning the American viewers off of 'no ads' to full ad displays, these network execs were not only able to save themselves from decimation and ultimate bankruptcy; they were also able to create the TV/Cable renaissance that is happening today.
Hulu was never meant to be sold or to be a .com IPO. It was designed to help Americans adjust their viewing habits. And it worked splendidly, Hulu had 30 million unique viewers last month (Sept 2013). And it's ad revenue will reach $695 Million this year [2].
Hulu also helped network execs with the know-how to create streaming websites for each of their cable channels (History, AMC, OWN - they all have video, go check them out) and helped them understand the requirements to make these streaming websites successful and profitable.
In conclusion, next time you hear about a potential IPO for Hulu or it is being sold/struggling, just remember, Hulu was not created for profit. It was only meant to change how you watch TV. And it did!
PK
(In March 2013, Kilar resigned from Hulu and joined the board of directors for DreamWorks Animation - Was this his reward for helping Hulu reach it's goal?)
What do you see as the future of TV and Cable?
Hulu.com was never created for an IPO or profitability. It was designed to change the TV/Cable viewing habits of millions of Americans, and it succeeded.
In 2007, we were all blown away by a new tv streaming website called Hulu. We quickly fell in love with this website. The videos streamed almost endless content and we were able to watch any show in the past 20 years with no ads!
Hulu is and was a joint venture between NBCUniversal Television Group (Comcast), Fox Broadcasting Company (21st Century Fox) and Disney–ABC Television Group (The Walt Disney Company) [Wikipedia]. The streaming website was created to solve a problem. I will elucidate the problem but first, let's go back to 2007.
In 2007; YouTube was the rage, torrent websites were out of control (Kim Dot-Com) and network and cable content providers were wondering how they were going to make any money from the new cost-free distribution program - i.e. the Internet.
Let's back up some more. In 2006, every network and cable provider could read the writing on the wall and knew that the Internet was going to wreak havoc on their ad revenue. So in late 2006, major network players came together in Florida and decided on a remarkably smart idea. They decided to put all of their content together online and see if they could find out how to make revenue on their shows.
These network competitors, and I mean COMPETITORS, signed an agreement providing their content for one website. (This is unheard of and I'll go into it if you like, suffice it to say, it's like Coke and Pepsi joining up and making one soda for Mars.) In 2007, Jason Kilar, a young bright Harvard MBA, was recruited to run the streaming startup. They named the service Hulu and launched it in 2007.
The purpose of this start-up was to figure out how to to take TV and cable shows, place them online and make ad revenue. Kilar was the key driver at Hulu and made a lot of intuitive decisions that we see in all streaming websites today. Kilar was aware of the purpose of Hulu and the sale of Hulu was never in the cards or its purpose.
The purpose of Hulu was to get viewers used to watching tv shows online. Hulu did this by offering every tv show known to man with no ads. They couldn't do this forever, but that was part of the plan.
In 2010, Hulu "complained" about their "lackluster" earnings and added ads to their content. They also began Hulu Plus which promised "ad-free" viewing for $8/month. (Hulu Plus now only provides newly released episodes, ad displays are identical to the free Hulu.)
For the next four years Hulu does what it set out to do, get American viewers addicted to watching TV shows online. Why you ask? Imagine the cost savings if TV operators didn't have to maintain and broadcast TV signals from hundreds of TV antennas across the nation. Imagine the cost savings if TV viewers all paid for TV access (you did this by paying for internet in your home). Imagine the cost savings if cable channels did not have to pay the cable providers for distribution -that's right, TV/Cable Execs were hoping to free themselves of TimeWarner, Charter, and other cable companies - and their fees.
Now you start to see the vision that the network execs saw in 2006. By creating a free service, providing unlimited content and then slowly, ever so slowly, weaning the American viewers off of 'no ads' to full ad displays, these network execs were not only able to save themselves from decimation and ultimate bankruptcy; they were also able to create the TV/Cable renaissance that is happening today.
Hulu was never meant to be sold or to be a .com IPO. It was designed to help Americans adjust their viewing habits. And it worked splendidly, Hulu had 30 million unique viewers last month (Sept 2013). And it's ad revenue will reach $695 Million this year [2].
Hulu also helped network execs with the know-how to create streaming websites for each of their cable channels (History, AMC, OWN - they all have video, go check them out) and helped them understand the requirements to make these streaming websites successful and profitable.
In conclusion, next time you hear about a potential IPO for Hulu or it is being sold/struggling, just remember, Hulu was not created for profit. It was only meant to change how you watch TV. And it did!
PK
(In March 2013, Kilar resigned from Hulu and joined the board of directors for DreamWorks Animation - Was this his reward for helping Hulu reach it's goal?)
What do you see as the future of TV and Cable?
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