IT Professionals

Why Hulu Failed And What You Can Do About It

Posted by on Jan 27, 2011 | 10 Comments

So is this the end of Hulu, then? Did the model fail, or was it perhaps the lameness of the content providers and networks? I am leaning with the latter, myself. With ABC threatening to withdraw content, in addition to content limitations depending on the Hulu device being employed by the end user, the company did the best it could. But with the news that Hulu may change its business model due to lackluster success with Hulu Plus, I’m sure a lot of people are wondering what is next for TV content on the Web.

Here are some things Hulu will have to change regardless of its next direction.

1) Get the networks in some decent contracts. A show is on Hulu, then it’s gone. Then it’s back, and now all we see are clips. This is stupid. Either ask the networks to participate or tell them to piss off already. If ABC would like to continue living in the past, then good luck with that.

2) Offer all of it or go away. I want my TV content à la carte. So if this means I need to tolerate the commercials as is, plus pay a reasonable monthly flat rate (not cable prices), so be it. I am more than happy to go this route. And while others will kick and scream at the idea of commercials and a flat rate, if ALL OF THE CONTENT is being provided without excuses, then perhaps this will quiet these folks down. If not, who cares, I’d be happy with it.

Why Hulu Failed And What You Can Do About It
Photo by Horrortaxi

3) Dropping the price isn’t the problem, Hulu, it’s the contract problems with your participating networks that are killing you. Even free, you’re a hostage to the networks and, I suspect, the big cable companies.

4) Netflix is viewed less than Hulu. Sorry, but there is more to new TV content than The Office and SNL. Whoever the idiot is that keeps saying that Netflix is better has a very limited library of favorite shows. The difference, however, is that Netflix offers the content commercial free. And this is preferable, but hardly the biggest issue.

The media needs to stop drinking its own Kool-Aid

Netflix is neat for movies and VERY limited TV content. But to exclaim that it won the war with Hulu is a bit naive. I am willing to bet that most people are watching Netflix for the movies and the documentaries, because their TV offerings are either behind or based on comedy skits. I subscribe to both services, watch both actively each day, and Hulu owns Netflix with TV content… even with its annoying TV content restrictions. I will openly admit that in the interest of avoiding further embarrassment, Hulu would do well to just stop offering movies. It’s embarrassing itself. It offers either titles that no one has ever heard of or are so incredibly obsolete that no one cares.

What we can do as consumers

Getting my TV content illegally isn’t an option, so I am left with making things work with the Netflix/Boxee/Hulu/Amazon OnBox combo. Even with all of these, I am paying much less than I was with the traditional TV route. More important, I am voting with my dollars instead of merely whining about it like so many on the Web do these days. If you’re sick of the cable companies raping your income each month, stop subscribing. It’s really very simple. Best of all, you can choose to participate and back the services you like. iTunes, Netflix, whatever it maybe, make your preferences known by demonstrating what you want — not merely by talking about it.

I will go on record in stating that cable TV/ satellite will never change simply because offering those useless channels no one cares about is a revenue stream for them. It’s not about you, folks. It’s about generating as much revenue as possible. And that is fine. I choose to go a different route and would encourage you to explore the feasibility of doing the same. If TV networks are not offering me content à la carte, I’m not watching. I’m happy to give them my money if they’ve got something good to offer me, but it’s not going to happen automatically this time.

  • John Bellagamba

    Sure you know, but ABC has an app for the iPad that works great. Unfortunitely, Im only a fan on 10% of their content. I wish others would do the same … CBS , NBC…. Etc. I’m sure many will start cutting cords if that happens.

  • Randy Allen

    So, here it the problem. Money. The networks are all wanting more money or they pull content. Hulu can’t give them more, unless they can generate more money, which consumers don’t want to give them. Why? Well, I just got a PS3 and now can only have Hulu+ for $7.99. Okay, that’s fair, but, why can’t I have at least the same content that is offered free? Because the networks won’t allow them to SELL it, unless they get a bigger cut. It’s like a police precinct coming in to find only 3 donuts. It’s going to get ugly!

    This whole thing is reminiscent of the satellite dish vs. cable companies from 15-20 years ago. In the end, the loser is the consumer who can’t get what they want, unless they are willing to pay the higher prices that Comcast and Time/Warner are getting for their content. I am betting cable companies are behind the whole hold out mess. They are losing customers and are forcing networks to put pressure on the online providers, in this case Hulu. If they can force Hulu to pay more or lose content, they will have to raise prices or have fewer offerings, which will bring consumers back to them.

    Yet another case of where big business tramples over the little guys and screws us, the consumers/voters/citizens. But it’s okay, because it’s done in a free enterprise market. Nothing underhanded going on here. Right!

  • Stephen Wilson

    For us, as US government officers stationed overseas, the biggest PITA of Netflix, Hulu, et. al. was that content was available in the US only. I’m not willing to play whack-a-mole with VPNs and have Netflix, etc. eventually discover each VPN provider and block it. Consequently Netflix, Hulu, the lot, are useless to us. Were it not for our Slingbox on a relative’s DishNetwork system (usable but iffy quality due to uplink bandwidth limitations in the US) and uTorrent, we’d have no US TV at all despite all Netflix/Hulu’s promises.

  • D

    I do watch movies on Hulu more than whatever TV shows they have available. The documentaries and movies are old…but I am seeing many movies I never had a chance to see years ago.

    The reason I don’t care what TV is available on Hulu is that I have two TV tuners hooked up to an antenna and a DirecTV box. With my tuners recording several shows at the same time on different networks…I edit out the commercials…watch the shows without commericals and when I want to. An added benefit…I have whole season available by burning a dozen 42 minute shows to a DVD.

    Being that all the providers believe they should be making more money than what they are…they are going to screw the people they should be bending backwards for. With my hardware/software…they can get as infantile as they want…but I’m still going to be watching what I want because I can. If that wasn’t bad enough…they just nailed their own coffin for torrents to take off like high heaven. It truly is amazing what greedy SOB’s will do to themselves because of their greed.

  • http://twitter.com/paytyler PayTyler

    Good post, I also want to say that I only subscribe to high speed internet, Hulu and Netflix. I get two T.V. stations with bunny ears, but it’s far more cost effective than the standard.

  • Stray

    I recently bought 2 Roku XD boxes and get 39 channels over the air with antenna. I also have Dish. I have been bitching incessantly for 25 years over the “Tier” concept of paying $100 (or more) a month for 300 channels, 285 of which we don’t watch.

    As soon as I figure out a good recording solution for Roku and our antenna then Dish will be gone! I am slowly training my family that they don’t need Discovery, MTV and National Geographic channels to wean them from Dish.

    So to Dish and the cable companies, thanks for holding me hostage and stealing my money for the last 25 years, that’s about to come to an end finally, say bye-bye!

  • Habib Alamin

    Cable TV/satellite is sh**, but some people want to keep paying for it, because it’s the only way they can get some content. BUT, if most consumers stop paying for it, we will have no cable/satellite for a while, but then they’ll be forced to change their business. But people aren’t willing to put up with that small gap of nothing to watch.

    Yeah, if I’m embarrassing myself, it’s because I know hardly anything here. Sorry. Just my two cents anyway.

  • J Crawford

    I agree withall the previous comments. I am also considering going to Megavideo because they have what Netflix and Hulu (without commercials) for about $15/month and $31/for 3 months. I love Hulu, but the commercials drive me crazy especially the same one over and over–I love when they condense the commercials to one setting and allow us to watch the show. I don’t have the equipment to record and take out commercials(strict budget) but Netflix serves its purpose until you have seen most of their movies and you don’t want to order DVDs, too time consuming. If Hulu were to charge more without commercials I’d be wiling to support them as long as they do not have cable prices. In fact, if they decided to show the shows a week later, would be ok with me. It doesn’t have to be the next day. It’s all entertainment for me, so I am not hung up on when just on no commercials.

  • Ronald Gerard

    “Even with all of these, I am paying much less than I was with the traditional TV route. More important, I am voting with my dollars instead of merely whining about it like so many on the Web do these days. If you’re sick of the cable companies raping your income each month, stop subscribing” — WISH I could, LIKE some of the Hulu stuff -)… but as was stated above, SOME content they’re “not licensed” 2 carry :p.

  • Joe

    We canceled cable TV 2 days ago. My body spasmed for about 5 minutes, but then I got over it. Between laptop, ipad and Roku I find enough interesting material. It’s not unlike traveling to another continent and adapting. But, I agree Hulu or someone else needs to put internet content squarely on the consumer’s menu. Clips are fun for a few minutes at the movie theater, not at home. Netflix invests big money to know what its subscribers want and best way to get it to them. See, e.g., http://www.netflixprize.com/. Mr. Hartley is on the money – Hulu needs to re-evaluate it’s model, quickly.