Sunday, October 25, 2009

Hulu to charge for content, but needs to sweeten the deal; Ars Technica, 10/23/09

Jacqui Cheng, Ars Technica; Hulu to charge for content, but needs to sweeten the deal:

Would you start paying Hulu for content that you previously got for free? The company's backers sure hope so, and they want to stick some content behind a paywall as early as 2010. "It's time to start getting paid for broadcast content online," said one exec.

"The free-for-all days of Hulu may soon be over. News Corp. executives indicated (again) this week that the free, ad-supported model wasn't bringing home enough bacon and that the company was preparing to start charging users for content as soon as 2010. This news comes as a harsh reality check to dedicated Hulu fans, and Hulu will have to offer them more than just a browser-based stream if the company wants people to start forking over money.

"I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value," News Corp. Deputy Chairman Chase Carey said at the B&C OnScreen summit this week. "Hulu concurs with that; it needs to evolve to have a meaningful subscription model as part of its business.""

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