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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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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Introduction Contd...

YouTube, the most popular online video destination site7 in the world, posed a problem for the two media companies, because users often uploaded copyrighted material to YouTube, without permission from the copyright holders. Monitoring YouTube for copyrighted content so that it could be taken down was a difficult job. Therefore, the companies decided to develop a website which would not only be an alternative to YouTube, but would also help them monetize their content.

Hulu, which was launched in March 2008 and was available only in the US, was based on a new business model.

Instead of charging users for downloading content like many other online video websites, Hulu inserted ads in the videos it offered. This made Hulu work more or less like a TV channel, except that it was on the Internet. Hulu developed a site with simple, easy to use features, where users could view streamed8 content with a flash-based video player...

Excerpts >>

7] A video destination site is one that is visited by a user after clicking on a hyperlink, banner advertisement or through a keyword search for a particular video in a search engine.
8] Streaming content including multimedia files, involves delivering media to the end-user in the form of data packets. These packets are received by a software application on the end-user's computer, which interprets the packets and renders the content to its true form.

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