Buzzword Chasers

Computers are quickly evolving to encompass every way one could possibly consume media. Everything from reading books to watching movies is available on the small LCD screen of your laptop.

The largest resistance has been reserved for the most logical transition: our old friend television. It’s not studios or networks, but the general public who are simply not watching television on their computers. Many networks have tried to air their shows independently on their own websites but that never did catch on. Sometimes the lack of interest had to do with the programs or sites not being user friendly, but mostly they had to do with the target audience.

You Do Hulu

More often than not websites target the younger demographics. In terms of television and movies, Hulu has begun simultaneously directing ads to both the young and the older generations. By keeping their website simple but engaging, they have reached the unreachable; they have taught that old dog a new trick.

Hulu was not the first to try to air television shows, but it is the first to succeed. Hulu did something rather revolutionary; they gave the people what they wanted. They offered television and movies with extremely limited interruptions and even gave viewers the option of watching their program straight through (after viewing a slightly longer commercial at the beginning). Their website design is extremely user friendly. It has a simple aesthetic, making it easy to browse, and the advertisements are arranged without cluttering or confusing.

Hulu’s continued success depends on a number of variables. With a website like Hulu and the success they have had, competitors are sure to appear. Their partners, the television networks, have stock in Hulu, and are getting their shows more and more exposure because of the online “on demand” set up of the website.

Aggressive Ads and Convenient Contracts

With the aggressive television ad campaign featuring Alec Baldwin and other celebrities, Hulu is maintaining its status as the leader in streaming television and movies. But because of the foundation of Hulu, long term success is not guaranteed. The website makes money off of advertisements, and the product they offer, television shows, are owned by separate networks, who are also their partners. If those networks decide to pull their programs and start their own website, then Hulu is left without a product, and advertisers will quickly pull their ads leaving Hulu with nothing. This point has undercut almost every acclamation Hulu has racked up from various critics.

The best shot a website like this has at making it long term lies in the hands of the contracts with the networks to distribute their shows. Short of that, the only other option left is to market aggressively so they can be the dominant name, if not the only name, in the online on-demand industry. By being the only option, and a force to be reckoned with, networks will keep supplying Hulu with their shows and Hulu will continue to make money.

Eric Feng, the Senior VP at Hulu, is taking the proper steps to ensuring the consistent success of the website. Though still dependent on outside networks and advertisers, Hulu is marketing themselves so they are desirable to the networks because of their attractiveness to viewers. So networks like NBC and FOX who are rivals on the television are partners on Hulu because they have no other option. Hulu just needs to keep it that way.