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Hulu Case Study

Derrance Turner and Wesley Renner
by

Jennifer Black

on 31 May 2013

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Transcript of Hulu Case Study

Hulu's mission is to help people find and enjoy the world's premium video content when, where and how they want it. As Pursuit of this mission, we aspire to create a service that users, advertisers and content owners unabashedly love. Source:

http://www.hulu.com/about

http://dstevenwhite.com/2010/11/20/watch-me-the-growth-of-internet-television-in-the-u-s-market/

http://www.lashorasperdidas.com/index.php/2011/06/23/hulu-for-sale/ At any time of day, and anywhere in the U.S you can watch network television shows, feature films and video clips in your Web browser using a free online service. More people would dump their cable providers for a Hulu subscription to save money. By doing away with Hulu being free, a paid subscription option would create a decline in new subscribers. Hulu could make more money from advertising companies, due to an increase of platforms offered. Another company could come along and offer free everything!! Possible Outcomes
if users paid for a Hulu subscription for more content. Option 1 Option 3 Choices Option 2 Best Recomomendation Continue free viewing, and also give viewers an option to pay for a subscription to have access to better content. Case Study Questions HBR HULU Case Study We could .... Continue 100% advertising-supported model...... Or... We can go ahead and launch to something more... Maybe we can consider other revenue models like Subscriptions..... (special offers deals .. We can even go for the both approach.... some common ground.... Brief History: March of 2007, Hulu CEO Jason Kilar, Jeff Zucker President & CEO of NBC Universal, and Peter Chernin the President & CEO of News Corp., announced a deal to launch "the largest internet video distribution network ever assembled with the most sought-after content from television and film.

August of 2007, the company name, "Hulu" was launched. In your view, should Kilar move Hulu away from a pure advertising-supported model? If so, what is the preferred new model? How does Hulu’s value proposition differ from that of traditional broadcast and cable television? And how does it differ from that of YouTube? What explains its success to date? How does Hulu serve content owners, users, and advertisers? Do the needs of these customer groups converge? What are the underlying economics of Hulu versus that of broadcast and cable television? Specifically, how do the revenues per hour-long program compare across television and Hulu? The different broadcasters – ABC, CBS, NBC, FOX, and the CW – have each chosen a different approach to the Internet. Which strategy is preferred? Answer:
Nothing in life is Free.. interview with Kilar from Answer:
Traditional is traditional it is as it is and it stays that way.

Youtube wont allow you to look up the video if its not uploaded.

Traditional broadcast and cable networks are now trying to mimic the Hulu model to date. Answer:
They serve content owner by giving them a percentage of sales.
They serve users by providing them with up to date and exciting viewable content.
They serve advertisers by allowing them to advertise within Hulu. Answer: Hulu offers the ability to only pay for what you want to watch, as compared to broadcast and cable television that ability doesn't exist. Answer:
To get on board with new media strategy or fail. Revenues per half hour-long programs. Hulu would increase over the years, and decrease with broadcast and cable television. The groups converge because you can't have one without the other.
March of 2008, Hulu opened its sites to the public, offering free streams of T.V and movies. Featuring over 200 Television shows and over 100 films there was more than 50,000 Hulu vids embedded on Nearly 6,000 sites across the web and 5million viewers watched video via huhu.com. The Problem Hulu wasn't bringing in enough revenue with advertisements alone. If they wanted to be on top they had to try to compete with YouTube, Netflix, and rework their platform. Hulu's Predictions were to generate $180 million in advertisement 2008 and $120 million in 2009 but only generated $65million in 2007. Hulu Case Study
Jennifer Black, Derrance Turner, Wesley Renner
Statistics
May 31,2013 Summary of it all....

Hulu started off their success by providing free T.V. shows/movies to users anywhere in the world. Hulu also made it possible for content to be viewed from just about any electronic device, which enhanced income from pure advertisement. Could they survive only from ads? Obviously you can...But if you want more you have to pay more.
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