lisamct:
Hulu is now considering transforming itself into a “virtual cable operator” offering live linear channels and VOD content to paying subscribers, according to an in-depth piece in the WSJ that cuts to the heart of many issues TV networks, the owners of Hulu, are facing as they balance the desire to develop new digital business with the need to protect their core businesses. Other Revelations include:
- New News Corp. President and COO Chase Carey, who worried that a whole new generation was being trained to find free TV online, was the impetus behind Hulu Plus
- Hulu CEO Jason Kilar threatened to leave the company if Hulu Plus didn’t lower its price from $10 to $5/mo.; a comprise was reached at $7.99/mo, equal to what Netflix charges for its streaming-only plan
- ABC, a late entry to the Hulu family, ruffled feathers when it launched its own full episode iPad app and is now working on developing its own digital subscription offering
- As Hulu begins negotiations to renew its content licenses, networks are considering requiring a two-week delay before new episodes can appear on the free Hulu service
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