There is a lot going on at Hulu these days.
Hulu is the video on demand service, founded in 2007, that has long served as one of the places to go to see original programming from the major networks on a delayed basis. It has operated with two tiers of service, a free service with supporting advertising, and an ad-free subscription service. In the last couple years it has moved into original programming, like many of its competitors, but so far Hulu has not landed a big hit for itself.
So what’s changing? Well, first is that the free service is gone. Hulu made a deal earlier this year with Yahoo to include the new Yahoo View service in a distribution deal. Yahoo View is a free online streaming service that promises to do a lot of the things that long time free service users have used over the years. This allows Hulu to focus on its subscription-based service.
And there’s a change there as well. Hulu is offering their basic subscription at just eight dollars a month. That makes a competitive price point for people looking at things like Netflix.
In the finest advertising tradition, I can also say, but wait, there’s more!
Hulu has announced that it is moving into competition with the cable and satellite service providers. Sometime next year, they aren’t being much more specific than that, Hulu will launch a live TV-streaming service. It’s interesting in a variety of ways.
First, it will have by today’s standards, a limited selection of channels. In this case, we’re talking about a number around seventy or eighty. The price for this service is supposed to be around thirty-five dollars. With investments from major content providers like NBCUniversal, Time Warner, Disney and Fox that means that all four major networks will be included along with many popular “cable” channels like ESPN, TNT, and AMC.
Here’s the note that struck me. Unlike a lot of media innovations, younger viewers are not seen as the primary target audience for the new service. Where this service is expected to thrive is in an older demographic, in their forties and fifties, who are looking for their favorite programs and looking to save some money versus cable fees, which average over one hundred dollars nationally.
Thinking back a couple months or so, I talked about a survey of TV subscribers that asked what they really wanted. The answer was basically this service. Just the most popular programs at a mid-thirty dollar price.
Every market has high and low ends. But there also a broad middle where money can be made as well if you’re smart.
There are still lots of questions to be answered about this service, but it looks like Hulu has got a plan that just might work.
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