Is Hulu Working?
One of the primary objectives behind Hulu was to put free programming on the Internet to combat the rampant pirating of TV content that took place on sites like the popular file-sharing destination, The Pirate Bay. As iTunes did with music, the idea is to make using Hulu’s service easier than having to go out and seek the illegal downloads. Although iTunes charges for music on a per-file basis, Hulu, too has a business model that makes you pay – except in their case, you’re paying with your eyeballs, not your credit card. Using video ads, Hulu has been attempting to monetize its service, but those efforts have been difficult at times. This spring, for instance, Screen Digest analyst Arash Amel claimed that Hulu had only sold about 60% of its ad inventory. “What we’ve seen is rapid growth in consumption, but the advertising isn’t keeping up,” he said. While these figures, if accurate, could be reason for concern, many feel that the profitability of an online video venture of this nature
