Hulu to start charging for content in 2010

Jacqueline DiOrio (Gnome_Queen) TANSTAAFL. Hulu will start charging for content in 2010.

October 24, 2009 2:40 PM ET in News, , ,

Rumors about Hulu asking for cash have been swirling for months, but now it’s official: Hulu will start charging for content in 2010.

“It’s time to start getting paid for broadcast content online,” said Chase Carey, Deputy Chairman of News Corp, parent company to Hulu. “I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value. Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business,”

Hulu will retain a degree of free content, but the newest or most valuable properties will presumably have a fee. The company has not yet released details on the payment model, however.

How successful this will actually be for Hulu and News Corp is unknown, since it is likely that many in Hulu’s audience will simply return to BitTorrent, rather than pay for the service. The fees will start dropping sometime in 2010, so cherish your free screenings while you can.

14 Comments:

  1. jared
    24 Oct '09, 7:09 pm

    I wish management would pull their heads out of their asses.

    The Hulu "generation" does not like to pay for content. Hence why Hulu got so popular in the first place.

    Stupid stupid move. Most people will just go else where, not pay.

    Tell me, if I have to pay for content, why would I pay for a streaming service when I could use iTunes and at least physically have a copy.

    Seems like a terrible move to me.

    I predict '10 is the year Hulu loses ground on the comscore charts - no matter how many superbowl commercials they have.

  2. CB
    24 Oct '09, 7:17 pm

    I think that is is the completely wrong course for Hulu, and not just because I don't personally want to pay for the content.

    Consumer purchased online content is the past, not the future. Advertisement eye-balls are the commodity that the interwebs run on now.

    I think that the only way it could work for them at all, is to make it a very small monthly subscription fee. I'm willing to pay $15 for my Netflix subscription, mostly because I get to use it to watch whatever I want from their database whenever I want, on my XBox. If they charged per minute, or per show, I wouldn't use it, even if that would add up to less than $15/month (however, I still wouldn't subscribe to Hulu in that case, because I already have Netflix)

    One thing is absolutely certain. Hulu's audience will not tolerate paying for content, and still having to watch ads. If they institute that system, they wont be around to regret it. Their audience will die so fast, they wont know what hit them.

  3. chrisWhite
    24 Oct '09, 7:20 pm

    Sigh. If I have to pay for it it better be cheap (more so then iTunes where you download and keep your video) and it had better not have any ads. I agree Jared, this is a stupid move and most people who use Hulu are just going to find another way to watch that doesn't involve paying.

  4. chad
    24 Oct '09, 10:25 pm

    "The Hulu "generation" does not like to pay for content."

    Maybe it's the Hulu "generation" that needs to pull their heads of out their asses, Jared.

    There is no free lunch! Tell the Hulu "generation" to get off the coach, get a job, and move out of their parents basements.

  5. mas0n
    24 Oct '09, 10:58 pm

    It's not a "free lunch" when Hulu is getting money from advertisers. It just so happens it was the first ad revenue I was generating for the networks in over a decade.

    Your summarization of the generation that expects content supported by advertising to be free for the viewer is pretty sad and far from accurate.

  6. primesuspect
    24 Oct '09, 11:13 pm

    Chad, over-the-air television has had free content since the invention of TV.

    Did the "generation" of the 1950's, 60's, 70's, 80's, 90's who grew up watching TV for "free" over the air have their heads up their asses too?

  7. GnomeWizardd
    25 Oct '09, 12:38 am

    hulu make bunches of money off the ads, Id pay monthly ( like a 5 dollar subscription per month) but there shouldn't be ads! And as far as telling people to get off their asses and move out? Please you are so far fetched it isn't funny, Over half this site is Grown men with Jobs and family's ( kids or wives ) to support. So get off your soap box before you Humiliate yourself even more ( n00b )

  8. Thrax
    25 Oct '09, 12:43 am
    Quoting chad

    "The Hulu "generation" does not like to pay for content."

    Maybe it's the Hulu "generation" that needs to pull their heads of out their asses, Jared.

    There is no free lunch! Tell the Hulu "generation" to get off the coach, get a job, and move out of their parents basements.

    Actually, there is such a thing as a free lunch, and I intend to bail on Hulu to eat it.

  9. Annes
    25 Oct '09, 1:00 am

    Relevant to the conversation.

  10. GnomeWizardd
    25 Oct '09, 1:09 am

    If they leave the site alone like that article is stating thats awesome. Hulu Plus tho? It depends on what it offers and how much, Id seriously consider it tho, I have no problem paying for extra content

  11. CB
    25 Oct '09, 6:24 am
    Quoting Annes

    Relevant to the conversation.

    That article presents the issue completely differently.

    If The free version of Hulu will be just like the Hulu I have now. I am totally unconcerned for their well-being.

    They need to fix their spin on this. People all over the interwebs are thinkingthat Hulu is going to start charging, when, according to this article, that's not true at all, they're adding a new, paid service.

    Completely different.

  12. Cliff_Forster
    25 Oct '09, 2:34 pm

    Getting a square deal for add revenue is tough right now. If things pick up prior to 2010 (unlikely) and people start consuming and company's feel reinvigorated they will start supporting ventures like HULU with increased advertising revenue. Right now, two 30 second commercials for a streaming show just is not enough to pay the bills. They are not limiting the adds because they want to be nice to you and give you a seamless experience, they are limiting the adds because most traditional advertisers don't want to pay the fee both for the broadcast time and they again on the back end on the internet. Blame the economy, blame advertisers, don't blame HULU.

    What I will say is I think advertisers are missing a golden interactive opportunity and that long term internet advertising is potential a far more effective medium because you have your audience right there in front of you, ready to click. Real time feedback, and a real time gauge on how effective your adds really are. Hopefully some big advertisers will see that potential and keep HULU free, but given the current economic environment I would guess that to be highly unlikely.

  13. Annes
    26 Oct '09, 2:29 pm
    Quoting CB

    That article presents the issue completely differently.

    If The free version of Hulu will be just like the Hulu I have now. I am totally unconcerned for their well-being.

    They need to fix their spin on this. People all over the interwebs are thinkingthat Hulu is going to start charging, when, according to this article, that's not true at all, they're adding a new, paid service.

    Completely different.

    I agree completely. I'm honestly not sure which article to believe.

  14. ardichoke
    27 Oct '09, 6:45 pm

    I hope the allthingsd.com article is correct. If it is I might even consider signing up for Hulu Plus depending on the price and the features. If they made it so that videos don't expire for Hulu Plus members and maybe they have earlier access to shows (I hate having to wait a week after the air date for most things to hit Hulu) that right there would warrant me paying a few bucks a month for it even if I still had to watch ads. If they went so far as to eliminate ads on Plus accounts or even reduce the number of ads they show, I'd consider shelling out 10 or 15 bucks a month. Especially if they expanded the content they have (I'd love to see live news broadcasts on Hulu from someone other than Faux News and all the time instead of just during special events for instance).

Troll-free since 2003 ®