Hulu An Evil Plot To Destroy The World
Hulu - An Evil Plot to Destroy the World
Question 1:
List the various groups of customers that Hulu’s business encompasses. Would it be possible for Hulu’s decisions to satisfy all parties simultaneously?
Response:
The Hulu platform business model encompasses the following groups of customers.
Content Owners
Content Distributors
Users
Advertisers
Content Owners:
“Hulu is about the Content Owners taking matters into their own hands - about participating in the value created through distribution of their content” - Andy Forssell
FACTS:
July 2009 - Hulu has 170+ content partners including ABC, NBC, FOX and various independent Content Owners
Many legal hurdles involved in content acquisition - Who owns what!?
Hulu content contracts were NOT exclusive - Owners were free to make deals with other platforms
COMMERCE:
Equity Partners - Receive 70% of Hulu generated Ad Revenue for owned content
Non-Equity Partners - Receive varying percentages of Ad Revenue for content
CHALLENGES:
Content Owners hesitant to distribute content through Hulu for fear of eroding their TV Ratings and DVD Sales
Content Owners wanting to make content exclusive to their own distribution platform (own website)
Cable Operators taking a “hard line” with Cable Networks by imposing restrictions and causing networks to balance a desire for online video distribution with existing business relationships
Content Distributors:
“The core idea was to bring the content to the audience, rather than forcing the audience to come to one site to watch shows” - Hulu Case
FACTS:
July 2009 - Hulu had deals with 30+ affiliated websites
Distributors enable Content Owners to connect with Users across platform
Distribution Network helps Content Owners discover new viewers and monetize their content - emphasizes Hulu as connection platform
50% of Hulu traffic comes from off the Hulu website
Hulu is both a Destination Model and a Syndication Model
COMMERCE
Distribution Partners receive up to 10% of ad revenue
Question 1:
List the various groups of customers that Hulu’s business encompasses. Would it be possible for Hulu’s decisions to satisfy all parties simultaneously?
Response:
The Hulu platform business model encompasses the following groups of customers.
Content Owners
Content Distributors
Users
Advertisers
Content Owners:
“Hulu is about the Content Owners taking matters into their own hands - about participating in the value created through distribution of their content” - Andy Forssell
FACTS:
July 2009 - Hulu has 170+ content partners including ABC, NBC, FOX and various independent Content Owners
Many legal hurdles involved in content acquisition - Who owns what!?
Hulu content contracts were NOT exclusive - Owners were free to make deals with other platforms
COMMERCE:
Equity Partners - Receive 70% of Hulu generated Ad Revenue for owned content
Non-Equity Partners - Receive varying percentages of Ad Revenue for content
CHALLENGES:
Content Owners hesitant to distribute content through Hulu for fear of eroding their TV Ratings and DVD Sales
Content Owners wanting to make content exclusive to their own distribution platform (own website)
Cable Operators taking a “hard line” with Cable Networks by imposing restrictions and causing networks to balance a desire for online video distribution with existing business relationships
Content Distributors:
“The core idea was to bring the content to the audience, rather than forcing the audience to come to one site to watch shows” - Hulu Case
FACTS:
July 2009 - Hulu had deals with 30+ affiliated websites
Distributors enable Content Owners to connect with Users across platform
Distribution Network helps Content Owners discover new viewers and monetize their content - emphasizes Hulu as connection platform
50% of Hulu traffic comes from off the Hulu website
Hulu is both a Destination Model and a Syndication Model
COMMERCE
Distribution Partners receive up to 10% of ad revenue