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Growing Pains at Hulu

2009-11-16 09:51 by
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Hulu is starting to show signs of why it's not easy to run a joint venture between competitors.

Recently, the popular video site's various parents have sent mixed messages about Hulu’s future business model—and whether or not it will erect some sort of paid subscription wall.

Now, reports are bubbling up about an increasing level of discord between Hulu's own ad sales staff and the staffs of each of the site’s broadcast partners: ABC, NBC and Fox.

Observers predict that the already complicated arrangement is likely to become more so, particularly given the prospect that NBC Universal may be sold to Comcast—which already operates its own online video site (Fancast) and has a markedly different philosophy regarding just how free TV content should be on the Internet.

The broadcast nets have always had first crack at selling their own shows on Hulu and can buy back inventory from the site at anytime. Hulu's sales team can't sell any individual series or network—but instead is supposed to sell buckets of video based on genre or audience demos. Theoretically, the broadcast nets shouldn't care whether Hulu or their own staffs sell inventory within their own shows—since the networks are said to pocket 70 percent of ad revenue regardless.

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by zoltan - 2009-11-17 10:23
hulu, much like mp3 piracy beforehand, was only tolerable because of ZERO cost.

No intelligent person would burn money on mp3 when they could buy CDDA (audio CD) or FLAC (lossless compression format)

hulu is barely tolerable being 'an' driven and restricted to the desktop. pirated video has no such restrictions.

people are willing to pay for their media, but no surprise: Americans want freedom.

They want their purchased media not to have fascist strings attached
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