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CMGT 543: Hulu Case Study
Transcript of CMGT 543: Hulu Case Study
What I'll Be Discussing...
What is Hulu?
Market & Competition
Business & Revenue Model
Sales, Subscriptions & Advertising
Acquisitions & Partnerships
Case Study: The Path
Leadership & Organizational Structure
Strategic Media Analysis and Recommendations
By The Numbers...
Who had this great idea?
A premium streaming TV service offering thousands of hours of the best television programming and movies to subscribers
Why was Hulu created?
Where is Hulu available?
Hulu was built on a simple concept: provide Americans legal & free content whenever and wherever
Quickly transformed viewing experience through shortened & personalized ads
What are other U.S. viewers watching?
How do these competitors stack up?
"Netflix is not our competitor. People's free time is our competition. Video games, dare I say going outdoors... We're competing with how people are spending their time."
VP of Content
Hulu gets content at a faster rate, giving them an automatic fan base from parent companies.
However, this serves as a double-edged sword for traditional viewing audiences.
Because Netflix is offered in various international territories, they are able to expand global content rights.
Steady Growth in Subscriptions
In 2016, Hulu is on track to bring in...
From 2013, this is an upwards growth of...
Source: Wall Street Journal, 2015
"People familiar with Hulu's financials say it has yet to reach substantial profitability." - WSJ
Over the past few years, Hulu has received about $750 million in loans from parent companies
With competitors in mind, Hulu is becoming aggressive in seeking new content
Source: Wall Street Journal, 2015
750,000 per episode
Spending vs. Competitors
Then and Now
Oct. 29, 2007
Hulu Beta launched
split between Newscorp, NBCU, Disney, & Providence Equity
Hulu Plus subscription debuted
Hulu up for sale by parent companies, then taken down
became 6th top content provider
(142 mil streams,
6.3 mil vis/month)
Who is running Hulu?
SVP Talent & Org
How is Hulu organized?
Mike Hopkins, CEO
Case Study of Original Content:
Premiere Date: March 30th
Season 1: 10 episodes
Distribution Rights: Hulu/Universal TV
Creator: Jessica Goldberg
Executive Producers: Universal Television & Jason Katims' True Jack Productions
"We've seen an incredible amount of growth.
Just last year we hired about 400 people.
Now we encompass about 1200 total. We
hire internally when appropriate, but overall
we aim to hire from diverse backgrounds."
-David Baron, VP of Content
"We have roots in start-up culture, which is why we define ourselves as work hard/play hard. On our wall of photos, each image represents one of us. Our CEO is seen crumbling up a business suit in his photo. He came from Fox."
Disrupting the Industry
"We've always had one foot in both sides of the industry - entertainment and tech. Essentially, we've always been about offering a service that goes above the norm."
-Creative Advertising Employee
Hoover Report: http://subscriber.hoovers.com.libproxy2.usc.edu/H/company360/competitorsList.html?companyId=159434000000000
With a subscription, where can you watch Hulu?
Hulu insights prove viewers spend the most time viewing content through TV sets
Consultancy in research gives advertisers highest ROI
Source: Hulu Advertising
Hulu Sees Steady Growth
Managing Technological Change
"Media organizations producing ad-supported media operate in a dual-product marketplace: they produce content and provide audiences to advertisers." (p.10)
"Creativity leads to the creation of a new product or service. Innovation is the successful implementation of these creative ideas." (p.149)
Creativity + Consumer Need =
"Cognition often surfaces in connection with
problems faced by sectors of the media in
coping with environmental change." (p.167)
"A leaders vision drives strategic action,
especially when seeking to achieve
transformational change." (p.206)
Netflix is still ahead... For now
Original content amongst wide array of genres
Binge-watching by season
$9.99 Netflix plan > $7.99 Hulu plan
Mailed DVD's, value