Wednesday, March 3, 2010

Goodbye To Free TV Shows Over The Internet?:HULU

There seems to be some issues between HULU and Comedy Central over Ad Revenues. I must also mention that as this is playing out over the Internet, a similar battle is going on between the cable companies and the Major channels, again over sharing revenue. According to AP News the company HULU that provides the online videos may be forced to start charging a fee per video viewed or by charging a flat fee.

I personally would not be willing to pay for the service at the moment, especially with the limits of what HULU offers and as long as companies like ABC, FOX, and Comedy Central control the videos that HULU currently offers. The main value of HULU in my books is the quality of the videos that they offer, unlike the writer of the story that praises the ease of use. I also, appreciate the way Ads are integrated into the videos themselves... In a non-aggressive, unobtrusive, non-annoying style. All indications that the Advertisers on their videos are very likely to get greater exposure than even TV can produce.

It would appear that the TV would eventually be cannibalized by the internet. I mean just take a look around you....... In case you did not notice. Your computer monitor is really a flat screen TV and they are indeed inter-switchable or interchangeable. Now I would hope that HULU will just hang in there and find a work-around to charging a fee. Try to get by on the Ad Revenue which understandably may be very low at this point. HULU should realize that the only reason they are having this battle with the Big Media Corps is that the Big boys already see the value in what HULU have and this may just be an attempt to cut a share of the pie early in the game or the ploy could be deeper.

My recommendation to HULU would be to rough it out and keep churning out the great service while working on creating growth in Ad revenue by increasing their number of users. Especially since it seems that HULU itself is backed by strong companies. The main thing their suppliers really wanted all along is to weaken them by driving away the users; not the Ad revenue that's still in infancy.

Well let me know what you think in your comments.

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