Hulu fears ABC iPad app could hurt its $9.95 subscription plans
Online streaming service Hulu is expected to introduce a $9.95-per-month subscription plan on May 24, but the company reportedly fears a free streaming application from ABC for the iPad could undermine its efforts.
The 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."
The 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."
Comments
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.
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.
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.
Okay... And I'm all for ABCs moves I think they are doing many positive things in the digital distribution space! However, lets not pretend Steve was some kind of stranger to Disney. He was the CEO of Pixar, and perhaps the one saving grace Disney had in its animated movie lineup for ... what 5-7 years? more?? What I'm saying is we can't overlook HOW Steve became the single largest private/personal stockholder in Disney and if you don't think Steve had the attention of the Disney board prior to Disney's acquisition of Pixar I'm gonna bet you'd be mistaken.
Now all that being said, Steve's influence can only go so far... They had to WANT to do it too. So, I do agree with you that Steve wasn't the ONLY driving force that compelled ABC/Disney to so fully embrace the iTunes and APP Stores so quickly but none the less he was "one force".
Do these guys live on the same planet?
If every network provided their content online (why wouldn't they?), then really what is the point of Hulu?
As for training people to pay for content I think the studio execs are retarded. People have never paid for content. Advertisers have always paid. When the networks were over the air only they freaked out about cable service. When VCRs came out the move studios freaked out about that. Now something like half of all the revenue for movie studios comes from renting and selling videos that people watch at home.
Being a media exec must be a cushy job. Everyone else has to drag them kicking and screaming into the present so they can make even more money.
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?
Agree 100%. i refuse to pay 9.99 for hulu when its free on my imac and i already have netflix.
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?
Welcome to adulthood where you are responsible for paying your own bills. I don't know about you but I've always paid for phone service (land and cell), cable, premium channels for cable, rented movies, and music. I don't remember any of those being free. Beside, you have the option to not use subscription services. There are prepaid phones and pay per episode TV shows (iTunes), and music sold per track (iTunes). Subscription services are great for many and it is not the only option.
People will choose free over paid and if other decided to follow ABC then Hulu subscription service will not work good for them.
It will be offers like these that will make everything free and make iAd a huge success. I believe iAd will work because we will be given a CHOICE to click on an ad and get involved with its contents, or not to click.
iAd seems to be the answer to advertising paid content for the net, just like the advertising paradigm we have "enjoyed" on TV for decades.
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?
if you mix
free abc and sy fi >>great shows
almost free netflix >>roku >>wi >MLB>amazon hd movie tv service ..decent shows some hd coming now
but blu ray discs in the mail is great
and your reg dvr broadband saved shows/movies
plus some great blu ray flicks
and your paid for /ripped itunes content
HULU look like a block buster purchase right now
i mean i don;t ever get HBO or those extra extras channels
and i still have an over load of free or cheap content
if some one gets their shit together then the 60 bucks a month cabe channel charge can be killed
hulu smulu