Wednesday, November 10, 2010

Hulu's Digital Pennies May Now Be Quarters

While not much is said on how the premium model is going for Hulu, Ad revenue does not seem to be suffering. "The company will generate $240 million in revenue this year, up from $108 million last year, and $25 million in 2008, (CEO Jason) Kilar said on stage at the NewTeeVee Live conference." Impressive growth from a startup. But does it indicate something more.

As they share their usage metrics, it makes me wonder the Hulu Effect on cord cutting. With so many users and so many streams, are these same users keeping their cable subscription and enhancing their usage experience. Or as some speculate, they have found that they can drop their cable service and watch their shows online only. So what is good for Hulu may not be good for Cable Operators.

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