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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Excerpts Contd...

Ending Some Distribution Partnerships

In February 2009, in a move that surprised many industry observers, Hulu suddenly ended two of its distribution partnerships. On February 17, 2009, it stopped providing content to TV.com, and two days later, it ended its partnership with Boxee.tv ...

Challenges

Even though Hulu was considered to be success with an increasing number of visitors and growing advertising revenues, analysts felt that it faced several tough challenges. Some analysts felt that Hulu was not monetizing its content properly.

They observed that as of late 2008, most of the ads that were being shown on Hulu were public service announcements or home rental ads...

Outlook

Online video advertising was projected to grow from US$ 1.4 billion in 2008 to US$ 4.3 billion by 2011. At the beginning of 2009, Hulu was the fourth largest video distribution website on the Internet, after Google sites (YouTube, etc), Yahoo! sites, and Fox Interactive media sites (MySpace, etc)...

Exhibits

Exhibit I: Unique Visitors: Hulu vs. Youtube
Exhibit II: Hulu: Viewership Data
Exhibit III: Hulu's Other Competitors
Exhibit IV: Top Video Destination Websites as of February 2009


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