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By: Bolivar DePena Brandon Gredler Katie Kirk. Mission. “…to help people find and enjoy the world’s premium video content when, where, and how they want it. As we pursue this mission we aspire to create a service that users, advertisers, and content owners unabashedly love.”.
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By: Bolivar DePena Brandon Gredler Katie Kirk
Mission “…to help people find and enjoy the world’s premium video content when, where, and how they want it. As we pursue this mission we aspire to create a service that users, advertisers, and content owners unabashedly love.”
Background and History • Conceived as a joint venture between NBC and News Corp • “Hulu” • Launched March 12, 2008
Background and History • Various agreements with content providers • Provided television shows and movies • ABC began offering shows in April of 2009
Initial Industry Reactions • “What do you expect? Sheesh…That’s what Bit Torrent is for.” • “I’m undecided…” • “…Hulu playback is terrible.” • “Site design is fantastic, yet it’s overrated on use.”
Important Dates 2007 2008 2009 • March 22: NBC Universal and News Corp. Announce New Online Video Venture • October 29: Hulu Debuts via Private Beta • March 12: Hulu Opens to the public • September 21: Hulu tops 100 content providers • December 18: Associated press nemesHulu website of the year • February 1: Super Bowl Ad • March 19: Hulu launches Documentaries • April 30: Disney joins Hulu • May 28: Hulu launches Desktop • July 16: Hulu Receives Emmy Nomination for ‘Alec in Huluwood’
Hulu Affiliates • FOX • NBC Universal • ABC • Comedy Central • ABC Family • Biography • Lionsgate • Endemol • Sony Pictures • Televisión MGM MTV Networks National Geographic Digital Rights Group Paramount PBS Warner Bros. …and over 150 more.
Business Model • Differentiated from YouTube • “Better content wins.” • Acquired the product licenses for the media • Distributors of top-shelf, premium content • 100% legal provider of media
Business Model (continued) • Free, ad-supported content • Only Available in the U.S. • Premium-Advertising Environment • Limited Advertisements • More memorable ads
Business Model (continued) • Syndicated • Through third-party syndication sites • NBC and News Corp vs. Hulu Ad Sales
Features • Quality and Convenience • Easy to Use and Share • Free and Legal
Quality and Convenience • Customize their viewing experience online • Allows users to watch favorites • Allows users to discover new shows • Search feature
Easy to Use and Share • Does not require download of software • Offers the freedom to share • Clipping feature
Free and Legal • Videos are available for unlimited streaming • Videos contain fewer ads than on TV • Hulu acquires the rights to distribute its videos
Flow of Content Content Providers: NBC, News Corp, etc Third Party Syndicators: AOL and MSN Content Aggregator: Hulu Consumers
Strengths • Quality of Content • Ease of Use – GUI • First mover advantage • Strategic alliances
Strengths (continued) • Monetization of Long Tail • Financial Backing • “Free to Me” • Instant Gratification
Weaknesses • Taking potential sales from DVD • No control as own entity • Unsustainable business practice • Inability to measure viewership
Opportunity • Mobile application • Live Television • Sporting Events • Radio
Threats • Piracy • Comcast deal • Lowering of ad revenue • Apple TV • Perceived threat by television giants
Consumer Make Up of last 6 mo. • Male 58% • Female 42% • 18-34 yr old 40% • 35-49 yr old 39% • 50+ yr old 17% • No college 48% • College 41% • Grad school 12%
Hulu’s View on Competition • “The main competitors to Hulu are the various piracy services that enable users with the ability to illegally access premium content for free, without the permission of the content owner.”
Other Competitors • Youtube • Netflix • TidalTV • Joost.com • theWB.com • Sling.com • Fancast.com • Boxee.com • DVR capabilities • Illegal piracy sites
Social Networking Aspects • Hulu Scorecard • Build Profile • Activities Update • Shared Queue • Subscribe to Favorites • Friends
Marketing Beginnings • Traditional TV ads • 20% of all traffic from online news sites • 55 yrs and older: 47% • 18-24 yrs old: 17%
Marketing • “An evil plot to destroy the world. Enjoy.” TM • http://www.hulu.com/watch/58538/hulu-tv-ads-alec-in-huluwood • Super Bowl Ad: 49% increase
Marketing • Automated Marketing (None in house) • Outsource creation of their ads – CP&B
Advertising (Revenue) Model • Three-tier model for advertisers • Financial information regarding partnerships not disclosed • High Engagement & “Less is More”
Advertising (Revenue) Model • User controlled ads • Popular shows demand higher rate card • Advertisers & Consumers are happy
Current Events • Los Angeles Times: “A Comcast deal for NBC could throw Hulu for a loop” • The Daily Telegraph: “Hulu UK launch delayed till 2010” • Mashable: “Watch Hulu with your Facebook Friends” • The Business Insider: “HuluiPhone App Coming Soon, ‘Badass’”
Future Trends • US content made available worldwide • Full International Rollout • Stream by other platforms • More Live streaming