Tuesday, 09 August 2016 05:44
has had an interesting and quite successful business model. There was a free version that allowed you to watch the last five episodes of your favorite TV show and was ad-supported - as well as a paid subscription model where all shows were available, but at a cost. They just announced that the free version is going to be killed shortly and if you want Hulu, you'll have to pay. On a side note, Yahoo (now owned by Verizon) just announced that they are offering a free video-on-demand service that "features" Hulu. So basically, it's the same horse, but a different color.
These companies want to use Hulu as a hedge against Netflix, where they sell their content and compete for time and consumer dollars. Making Hulu subscription-only allows them to better position it as a premium service that can house original content. By shifting it's lowest margin ad-supported streaming over to Yahoo, Hulu's ownership reduces friction with its own TV advertisers and positions Verizon, which just acquired Yahoo, as a source of substantial future revenue.