Sam OliverThe Los Angeles Times this week reported that Hulu plans to introduce a new service, dubbed Hulu Plus, that would give users access to a greater range of content. Customers would still be able to view the five most recent episodes of popular shows like "Lost" and Glee" for free, but subscribes would have access to a "more comprehensive selection," the report said.
Hulu also has plans to tie its subscription service in with a new iPad application. But according to Peter Kafka at MediaMemo, Hulu's iPad subscription aspirations could be devalued by a free streaming video application from ABC already available on the App Store.
Citing industry sources, Kafka said that Hulu CEO Jason Kilar "tried desperately to get ABC not to introduce its free app," because ABC giving away free content makes subscription-based access to Hulu on the iPad seem less valuable. ABC obviously did not place much weight behind Kilar's concerns, as the network's streaming application was available on the iPad from day one, and has found great success.
ABC's embrace of the iPad should come as no surprise, as the network is owned by Disney, of which Apple CEO Steve Jobs is the single-largest shareholder. In addition, after the iPad was announced, Disney Chief Executive Bob Iger called the iPad a "game changer" and said his company has big plans for interactive content on the device.
The Hulu subscription will reportedly only apply to shows from ABC, NBC and Fox. Cable networks like AMC and FX, Kafka said, will not offer content with the $9.95-a-month plan.
While current plans call for the most recent content on Hulu's website to remain free for viewers, previous reports have alleged that the iPad application will be a pay-only service.
Hulu could incentivize its subscription plan with Apple's iPad, and also offer a "window" where content is available to subscribers before it can be seen for free by the general public. According to the Times, it is Hulu's business partners that have pressured it into the subscription plans, "to both bolster revenue and train viewers to pay for online access to professionally produced content."
Christine McKee
Malcolm Owen
Amber Neely
William Gallagher
56 Comments
I would say that is a good reason to be scared.
I do not think the Jobs -> Disney -> ABC relationship has a thing to do with it. It is a matter of free or paid - now if Hulu with no commercials may be viable.
I would say that is a good reason to be scared.
I do not think the Jobs -> Disney -> ABC relationship has a thing to do with it. It is a matter of free or paid - now if Hulu with no commercials may be viable.
Totally agree. The market changes--nothing new to capitalism--so change your business strategy.
think about all the different services we have subscriptions to, cell phone, cable, premium channels for cable, Netflix, a choice of various music services, etc... Do we really need to pay for something that not too long ago was free with every TV?
Bob Iger at ABC has been one of the fastest moving execs in the TV industry. Don't forget that ABC was the first one to offer TV shows on iTunes, before Jobs ever owned a single share in Disney. I don't think the Disney-Jobs-Apple connection had as much to do with ABC being there with an app, as much as the fact that ABC simply believed in the iPad's success.
There is no reason why ABC couldn't also introduce a premium version that can play archived episodes and perhaps even Disney film content.
The key thing here is how many ads will accompany the content. Netflix instant is a hit because it has no ads. In fact I'm quite happy to watch Lost 6 months after everyone else, just so I don't have to suffer them.