Hulu pushes forward with $9.95 subscription service

[PowerZord]

Hulu pushes forward with $9.95 subscription service Los Angeles Times http://bit.ly/akF6hV


Hulu, the popular online site for watching television shows, plans to begin testing a subscription service as soon as May 24, according to people with knowledge of the plans.Under the proposal, Hulu would continue to provide for free the five most recent episodes of shows like Fox's "Glee," "ABC's "Lost" or NBC's "Saturday Night Live." But viewers who want to see additional episodes would pay $9.95 a month to access a more comprehensive selection, called Hulu Plus, these people said.
Hulu, which ranks second only to Google's YouTube in terms of monthly video streams in the U.S., said it turned an operating profit in its two most recent quarters. The 2-year-old service, which is owned by media giants News Corp., NBC Universal and the Walt Disney Co., generated more than $100 million in revenue from advertising.
Still, that doesn't come close to matching the revenue that these companies are accustomed to raking in from their more established businesses. That's why Hulu is under pressure from its owners to collect a subscription fee to both bolster revenue and train viewers to pay for online access to professionally produced content.
Television executives don't want to suffer the same fate as music industry or newspapers, which saw users flock to free access to songs, stories and classified ads online -- and revenues plummet.
In the past, Hulu primarily offered shows that were broadcast over the air for free. But now, as the major networks are trying to extract payments from cable operators and television station groups, they can no longer justify offering the same shows online for free. Shows on Hulu also carry commercials, however there are fewer spots there than on regular television. Ultimately, Hulu is expected to adopt the same commercial loads as network television.
Hulu did not immediately respond to requests for comment.


After TWO years of free content now they want to charge for their service? This isn't going to end well.

[The Penguin]

After TWO years of free content now they want to charge for their service? This isn't going to end well.Did you read what you posted? They are going to charge for TV content that you can't get now. Most shows you can get the last five-six episodes right now and that is not changing. They're gonna let you see al the episodes of that show for 10 bucks. That doesn't sound too bad in the grand scheme of things. I suppose the specials where all the episodes are there to get you to watch it for the first time will be gone, but nothing has really been lost here.

[defunctzombie]

If they're going to make us pay for the service then they need to drop the commercials. If I have to pay ten dollars a month then I'm just going to start save for dvds. All I watch on there is Inuyasha and the occasional Family Guy that I missed.

[mr.happy]

After TWO years of free content now they want to charge for their service? This isn't going to end well.Why not? It's a very common business model, and new shows will still be available for free. Seems perfectly reasonable, although I wonder how much interest there'll be in the Plus subscription.

[PC!]

Sounds very reasonable. I doubt I'll pay for older content since I'm perfectly happy just watching the five or so latest episodes of shows, but that's definitely a fair business model, I think.

[Peter Paltridge]

I was afraid they would roll some of their existing content under subscription, but this makes sense. Except for one thing:


Hulu, which ranks second only to Google's YouTube in terms of monthly video streams in the U.S., said it turned an operating profit in its two most recent quarters.
If they're profitable NOW, then why do they need subscription money?

[PowerZord]

Did you read what you posted? They are going to charge for TV content that you can't get now. Most shows you can get the last five-six episodes right now and that is not changing. They're gonna let you see al the episodes of that show for 10 bucks. That doesn't sound too bad in the grand scheme of things. I suppose the specials where all the episodes are there to get you to watch it for the first time will be gone, but nothing has really been lost here.

Hulu would continue to provide for free the five most recent episodes of shows like Fox's "Glee," "ABC's "Lost" or NBC's "Saturday Night Live." But viewers who want to see additional episodes would pay $9.95 a month to access a more comprehensive selection,

As I assume from this part of the subject only the new shows would get free episodes the rest are subscripcion. Paywall hasn't work well in the past couple of years.

[cohenmarioman]

This is why those companies that want their viewers to watch their shows should go elswhere for their streaming, or create their own streaming site like South Park did. Why can there not be a Family Guy Studios? For free too.

[Matt Hazuda]

I wouldn't mind this if and only if the $9.95 a month paid for access from mobile devices or game consoles or TVs that are internet capable or whatever other electronic devices that receive services like Netflix, then yes, it would be perfectly fine. To pay that fee just to get continued as-is access with a few additional perks seems useless at this point given the alternatives available (be it legal or otherwise).

[SirLemming]

I'm glad this is finally happening and that it's reasonable, instead of all the scary rumors that have been flying around. They're adding extra stuff for people who want to pay extra, without removing the existing stuff that currently makes the site so great. Seems like a win-win situation to me.

Although as a Netflix subscriber, you can be sure I'll remain a freeloader in this case.

[mr.happy]

I wouldn't mind this if and only if the $9.95 a month paid for access from mobile devices or game consoles or TVs that are internet capable or whatever other electronic devices that receive services like Netflix, then yes, it would be perfectly fine. To pay that fee just to get continued as-is access with a few additional perks seems useless at this point given the alternatives available (be it legal or otherwise).Yes, I don't necessarily see much value in the subscription service, certainly at that price, but from Hulu's point of view, they will surely add some subscribers and dramatically cut their bandwidth costs by restricting access to a large amount of older content. The fact that current content remains free means they're unlikely to lose many users, and they will still have a continued revenue stream from advertising.

[Zorak Masaki]

I hope they mean that by "additional episodes" it means the complete season/series for the newer shows. I dont want to see the older/obscure shows made pay-only (and really, would there be demand for some of those older shows to make them pay-only?).

[wonderfly]

I have kind of a "wait and see" attitude towards this. I could get behind have an entire season of a new show online, and not pay for the newest 5 episodes, but pay for the rest of the season. For instance, I'm behind on the show "24" right now - more than 5 episodes behind. Thus, I could pay $9.95 and get to watch the entire season whenever I want...or would they take down the current season when the next season of the show debuts?

That's a good point...would you get all prior seasons for $9.95, or just all of the current season?

Furthermore, what about "classic" shows? I really enjoy having all of the 90's "Outer Limits" show on there, and most of "The Incredible Hulk" is on there as well...I'd hate to have to start paying for that stuff...they need to distinguish whether "classic" shows fall under this new payment arrangement or not.

[Zyzzybalubah]

I'll consider doing this under one condition... They let you play the episodes on PlayStation 3 again AND... the shows that are in HD are in 1080p. I can settle with it being free and only viewable on computer, but if they're going to charge (I know, the exception of the five recent episodes), I should be able to watch them on my 52-inch television! :D

[SirLemming]

Furthermore, what about "classic" shows? I really enjoy having all of the 90's "Outer Limits" show on there, and most of "The Incredible Hulk" is on there as well...I'd hate to have to start paying for that stuff...they need to distinguish whether "classic" shows fall under this new payment arrangement or not.

I have a feeling the new model only applies to the recent, major network shows that are on there -- the ones that already have a 5-episode limit. The wording is: "Hulu would continue to provide for free the five most recent episodes of shows like Fox's "Glee," "ABC's "Lost" or NBC's "Saturday Night Live." But viewers who want to see additional episodes would pay $9.95 a month to access a more comprehensive selection, called Hulu Plus, these people said." To me it sounds like they're just talking about those shows.


I'll consider doing this under one condition... They let you play the episodes on PlayStation 3 again AND... the shows that are in HD are in 1080p. I can settle with it being free and only viewable on computer, but if they're going to charge (I know, the exception of the five recent episodes), I should be able to watch them on my 52-inch television! :D

Yeah, they should definitely give paid users full HD streaming capability.

[bigddan11]

I really don't mind the subscription service idea, especially if it means shows like Psych will have the entire season available. What I fear though is that it would change current shows, like Hikaru no Go, and change all the episodes currently available to solely subscription, with the exception of the newest 10.

[Mandouga]

I'm going to say it. I mind it. Very much.

At any rate, and with all due respect, SirLemming, I have to disagree with you. I personally don't think the wording is clear as to what this would entail. If it's only limited to shows currently airing on TV (like the ones you mentioned), then fine, but not if we have to pay for the whole thing (i.e., just to see older shows).

The only thing that is clear is that they will only be "testing" the subscription model. In other words, Hulu has not fully decided if they will implement it "for real". They may discontinue it if enough people don't subscribe.

To put it in perspective, the commercials already pay for it. Also, as others have said (more or less), to pay for something, but then get commercials anyway is hypocrisy (and no this is not like cable/satellite/IP TV at all; online streaming is a whole other ball game. However, this is not the place to debate the issue).

IMO, I think we should wait for more information before we draw any conclusions.

Incidentally, I should mention that I only watch shows in the "Animation and Cartoons", and "Family" categories (and Faerie Tale Theatre, which should be in the Family category, but is in the Drama category instead).