TV Everywhere has a lot to learn from Hulu. Not that it will listen.
Network television is moving forward with TV Everywhere, its plan to move television content online, but it looks like there are more than a few aspects of television broadcasting that executives are not willing to forgo — namely the ad load.
At the Cable & Telecommunications Association for Marketing Summit in Denver this week, cable executives made it clear that TV Everywhere will not be a "Hulu for cable."
And why would it be? Hulu works.
Five easy freemium tricks Hulu can use to make more money
Hulu made its name by turning a seemingly bad business idea into a widely popular website. Before the site launched, techies dubbed the television network focused web venture "Clown Co." And for the past two years, Hulu has impressed many with the quality of its content and viewing experience.
But as advertising revenues have dropped and his other properties flounder, Rupert Murdoch has been dropping hints that the company will soon charge for access.
News Corp. Deputy Chairman Chase Carey laid it on the line this week, saying that Hulu will begin charging for content in 2010. Putting Hulu's video collection behind a paywall has the potential to choke off its viewership and tank a thriving business. That said, the potential to charge a subscription fee is clearer getting News Corp. hot and bothered. So here are a few ideas that Hulu could use when it starts charging for content next year.
Publishers want a "Hulu for magazines." Will it work?
Due to the runaway popularity of Hulu, many different publishers are hoping to tap into a similar model for sharing their content online. The latest proposal is a "Hulu for magazines" idea lobbied by Time Inc. The new service would bundle magazine content from various publishers into a storefront that can deliver content to various devices.
Here's a problem with that. Hulu doesn't make money right now. And plans to resuscitate the magazine industry by following its business model may be, well, a little premature.
Nielsen's online television meter won't be useful until 2011
This week, Nielsen announced its new "Internet Meter" will be available by the end of the year. But it won't actually be useful until 2011. And the cable companies' plans for TV Everywhere are likely to be put off until 2014. While television companies are talking a lot about putting their premium content online, it could be awhile before this becomes serious business.
Murdoch's new monetization plan: Somebody had to do it.
Rupert Murdoch is going all in on paid content. The News Corp. head anounced yesterday during an earnings call that all of his publications will be charging for access within this fiscal year.
The announcement has been met with both derision and excitement. Charging for news content has the potential to shrink audience numbers and choke ad revenue. But as publications struggle to find the right revenue model, Murdoch's decision could pave the way for other organizations that have been talking a lot about charging online but doing little about it.
So will News Corp. sink or swim with its plans to charge for content? The answer, as with anything: it depends on execution.
Online video audiences can't grow fast enough
Online video viewing is set to reach a milestone next year according to eMarketer. Numbers released this week show that half of Americans will watch online video next year.
But there needs to be a categorical shift of viewers online if the web video hopes to make the kinds of revenue that are seen offline.
ABC partners with Netflix to stream its backlog of shows
Netflix has been hard at work getting its content on as many platforms as possible. This week, they're starting to stream early seasons of ABC shows like "Lost" and "Desperate Housewives." There are also rumors of a Netflix app that will soon stream video content to the iPhone.
This is all great news for Netflix. But is it a winning situation for the networks? Yes.
Comcast brings its advertising everywhere
Television networks are desperately trying to bring their ad dollars from television onto the web. And Comcast's new strategy to earn ad dollars online is to simply shift put all of its content there.
A new partnership with Time Warner, called TV Everywhere, is bringing Comcast content online for their television subscribers. But while TV viewers might be glad to see that content on the web, they will be less enthusiastic about the fact that it comes with all of the network's television commercials.
People are willing to pay for online video
The free online ad supported video segment may be growing, but new research shows that people are willing to pay for their online video.
According to a report by Boston-based Strategy Analytics, paid-for video is expected to grow faster than free ad-supported video over the next several years, at a rate of 39% annually, compared to 37% for free video.
That's good money if you can get it. But it will be a hard sell to get people to pay for things they get now for free.
Why Hulu works. For now.
Video portal Hulu has come a long way since it was colloquially known as "Clown Co.” The website has since gotten a real name, design raves and 10% of the online video ad market.
And as video sites like YouTube struggle to bring in ad revenue and portals like Joost shutter, Hulu's network supported business model seems even stronger.
Today The New York Times discusses the reasons why Hulu works. Mostly, it's because they just throw network content up on the Internet unscathed.
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Graham Charlton
Strategy & Planning
