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Hulu’s CEO has thrown down the gauntlet in an in-depth statement that shows his outlook on the future of media delivery via the internet. It also includes some interesting data and metrics that we’ll be discussing.
Since this weekend is the BIG GAME, and none of us have much interest in it, we’ll be using Hulu’s statement as a jumping-off point to discuss some of OUR ideas on the future of Internet media delivery, as well as some really neat what-ifs, and a few glimpses at neat sci-fi tech that could change the way we get our media.
Show Feeds:
Show Notes:
HULU
Hulu’s statement by CEO Jason Kilar
- Consumers, Advertisers and Content Creators will drive the future market directly, instead of relying upon Content Delivery Services to manage the 3 of them individually.
- Content Delivery will become a passive market, instead of an active one.
- Consumers are the greatest marketing force a program can have, via social media tools.
- “Chuck” – almost cancelled after 2nd season, resurrected by fan support.
- “The Cape” – already backed down to 10 episodes, from 13. Likely canned soon.
- Advertisers will seek to target people directly, instead of shows as proxies for people based on assumed interest and demographics.
- Accuracy of online media demographics greater than TV surveys.
- Hulu’s advertisements are roughly 2x as effective as traditional TV, with ¼ of the screen time.
- (GRAPHIC CHART showing Hulu vs. Cable ad revenue)
- “We expect to approach half a billion in total revenues in 2011, up from $263 million in 2010, which was up from $108 million in 2009.”
- “Per-user Per-month” licensing rates instead of flat fees will enable Content Creators to get a better investment on a good product, which will drive higher quality content creation.
- Dual revenue stream services (like Hulu + HuluPlus) will become a standard, where a portion of the service will be financed via advertisers, and another portion by consumers.
- This is opposed to current Content Delivery, which double-dips and charges both Advertisers and Consumers for the same product at the same time, leaving both feeling cheated.
SUPERBOWL and ADVERTISING
- Live events will continue to have a specific niche market, even after the widespread switch to On-Demand media that pretty much everybody knows is coming.
- You can’t On-Demand a major event like the Superbowl – it must be witnessed LIVE as part of the spectacle.
- So how can you ad incentive to a market where commercial breaks of 5-10 minutes are going to be a thing of the past?
TECH and GADGETS
A few things we’re already seeing:
- TV services with internet access (Boxee, Netflix on Consoles, Roku, Apple TV, etc)
- 3D displays that don’t require glasses (Nintento 3DS)
- Flexible OLED technology (vid 1, vid 2, vid 3)
- Abolish the remote control (Kinect)
Things from the future:
- Holographic displays (vid 1, vid 2)
- Wireless power and worldwide wireless broadband