Hulu fears ABC iPad app could hurt its $9.95 subscription plans

Posted:
in Current Mac Hardware edited January 2014
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."
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Comments

  • Reply 1 of 56
    damn_its_hotdamn_its_hot Posts: 1,209member
    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.
  • Reply 2 of 56
    q dudeq dude Posts: 16member
    Quote:
    Originally Posted by Damn_Its_Hot View Post


    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.
  • Reply 3 of 56
    kerrybkerryb Posts: 270member
    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?
  • Reply 4 of 56
    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.
  • Reply 5 of 56
    zoolookzoolook Posts: 657member
    There is no reason why ABC couldn't also introduce a premium version that can play archived episodes and perhaps even Disney film content.



    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.
  • Reply 6 of 56
    davegeedavegee Posts: 2,765member
    Quote:
    Originally Posted by addicted44 View Post


    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".
  • Reply 7 of 56
    motleemotlee Posts: 122member
    Sounds to me like Hulu doesn't like other companies using it's business model.
  • Reply 8 of 56
    SpamSandwichSpamSandwich Posts: 33,407member
    It's only a matter of time before every channel figures out for themself that they could house their HD content with Google, offer it streaming over their own app and split pre-roll ad revenue, no subscription. It's a free-for-all right now and I would not make any binding long term deals with Hulu if I were in any of their shoes.
  • Reply 9 of 56
    blastdoorblastdoor Posts: 3,278member
    woof woof
  • Reply 10 of 56
    $9.95?! Per month? ~$120 per year for something we can get for free on a laptop?



    Do these guys live on the same planet?
  • Reply 11 of 56
    quadra 610quadra 610 Posts: 6,757member
    Compete or die, Hulu.
  • Reply 12 of 56
    str1f3str1f3 Posts: 573member
    Who is actually going to pay for this? A DVR costs the same per month and you can record every channel you own. LOL, arguably their best two channels (AMC & FX) are not even included!
  • Reply 13 of 56
    cmf2cmf2 Posts: 1,427member
    If you want paid subscriptions to work, bring live programming to the table.
  • Reply 14 of 56
    I'd rather endure commercials than take on another monthly fee.



    If every network provided their content online (why wouldn't they?), then really what is the point of Hulu?
  • Reply 15 of 56
    I think for everything but a few niches, like sports, the concept of live tv is dead. People don't want to be bound to network time slots. People want to watch the shows they want to watch when they have the time to watch them. That's why DVRs are so great.



    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.
  • Reply 16 of 56
    Quote:
    Originally Posted by kerryb View Post


    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.
  • Reply 17 of 56
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by kerryb View Post


    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.
  • Reply 18 of 56
    I dont thik this hulu service will catch on, on the ipad. Most people that will use the ipad that got the wifi model will use it mainly at home and the odds are that they have cable/internet with some type of laptop/desktop that thay they can already watch hulu on for free. If they by some chance they catch wifi connect outside of home its not going to be to go on and watch hulu once or twice and pay 10 bucks for it..... This defenately wont catch on. If they were smart they would just make and a free App and run commercials and that will fly with alot of ipad users. Now on the ipad 3g model maybe that could work but i dont think people are going to pay another 10.00 a month on top of there pay as you go option with At&t 3g that's way too many bills.
  • Reply 19 of 56
    Actually we are being trained NOT TO PAY. Who would? It is a lousy offer on its face.



    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.
  • Reply 20 of 56
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by kerryb View Post


    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
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