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