Hulu.com: A New Business Model for Online Video?


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Case Details:

Case Code : BSTR326
Case Length : 14 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Hulu LLC
Industry : Online Video
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"We embrace this activity in ways that respect content owners' - and even the entire industry's - challenges to create great content that users love. Yes, it's a complex matter. A tough mission, and a never-ending one, but one we are passionately committed to."1

- Jason Kilar, CEO of Hulu, in 2009.

"I think there's a snarky desire to say this is big dumb media and this is a big dumb joint venture. If there is a product that's attractive to consumers, we'll be just fine."2

- Peter Chernin, President of the News Corporation3, in 2007.

Introduction

In mid-February 2009, Hulu.com (Hulu), an online video site which offered Internet users TV shows and movies from about 110 content providers, decided to stop providing content to two websites - TV.com and Boxee.tv. While it stopped providing content to TV.com stating unspecified 'contractual issues', it broke its links with Boxee.tv after some of its content providers asked it to do so.

Hulu was developed by two rival media companies, Fox Broadcasting Company (Fox)4 and NBC Universal (NBC)5, as a competitor to YouTube.com (YouTube)6.

Hulu.com: A New Business Model for Online Video? - Next Page>>

1] "Boxee Pulls Hulu at Request of Content Providers," www.macdailynews.com, February 18, 2009.
2] Brad Stone, "Hulu Readies Its Online TV, Dodging the Insults," www.nytimes.com, October 29, 2007.
3] News Corp. was started in 1980 by Rupert Murdoch in Australia. As of 2009, it was considered one of the largest media conglomerates in the world and had operations mainly in films, television, newspapers, and cable programming.
4] Fox, started in 1986, is an American TV network that is owned by Fox Entertainment Group, which in turn is a part of News Corp.
5] NBC is a media and entertainment company that was formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment (part of the French Media Group, Vivendi Universal (Vivendi SA)). While GE owns 80% of NBC, the remaining 20% is owned by Vivendi SA.
6] YouTube was founded by three former employees of PayPal in February 2005. In November 2006, YouTube was acquired by Google Inc. for US$ 1.65 billion.

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