Hulu

Posted on February 18, 2016 by Jonah Rappaport

hulu company logo [1]

Founded: March 2007 by Beth Comstock & Jason Kilar

Jason Kilar [3]

Beth Comstock [2]

CEO: Mike Hopkins

Mike Hopkins [19]

SVP, Head of Distribution: Tim Connolly

Tim Connolly [19]

SVP, Head of Content: Craig Erwich

Craig Erwich [19]

SVP, General Counsel: Chadwick Ho

Chadwick Ho [19]

About

Hulu is an OTT (over the top) streaming service launched in 2008 to provide users with “hundreds of thousands of hours of the best of the best television programming and movies to subscribers with limited commercials” [4]. Hulu offers its services in both the United States and Japan on two pay scales: “with limited commercials for $7.99 per month or with no commercials for $11.99 per month” [4]. New users can also try Hulu for a 30-day free trial.

Compared to other OTT streaming services like Netflix and HBO Go, Hulu has the benefit of being owned by three of the largest programming distributors: NBCUniversal, Fox, and Disney-ABC. In total, Hulu has over 500 content partners [4], providing them a great advantage in programming over their competitors. On the advertising side, Hulu has partnerships with over 2,000 brand and companies, helping it gain recognition as one of “the top ad-supported online video sites” [4]. Hulu boasts a subscriber base of 9 Million users whose viewership trends are tracked by ComScore, Nielson, and Quantcast.

Background

Hulu was first announced during the Super Bowl XLII broadcast via an Alec Baldwin-starring commercial. Initially, the platform was available for free via an ad-supported system and at a premium level called “Hulu Plus” without ads. Archived content from its three powerhouse distributors (NBC/Fox/Disney) could be viewed in on an unlimited basis on both platforms. In 2011; however, Hulu announced that content would be available on the service the day after premiering once users authenticated their service-providers [5]. Later that year, the company struck a deal with the CW Network to also premiere their content next-day [6]. Two years later, Hulu signed on with BBC Worldwide North America to “bring as many as 2,000 episodes from 144 different BBC titles to a wider American audience” [7].

In Early 2015, AT&T struck a deal with Hulu to allow for streaming on “the telecom company’s websites and mobile apps” [11]. In June of 2015, Showtime became “the first premium service to be offered by Hulu” [8], in a monumental deal that allowed the company to effectively compete HBO Go by offering the addition of Showtime‘s premium content at only an additional $8.99/month as compared to HBO Go‘s $11.99/month charge [8]. This deal also showcased the Hulu platform’s ability to support premium add-ons, highlighting them as a powerful distribution tool for premium content providers. In

Original Programming

In 2011, Hulu partnered with documentary film-maker, Morgan Spurlock, on a 6-episode series titled, “A Day In The Life” [9]. The show was available to both free and premium subscribers and chronicled Spurlock as he followed a famous individual around for a day. In 2013, the company ramped up it’s original content by premiering “three original series and seven exclusive shows” [10]. As of April, 2016, the platform boasts 23 original titles, ranging from shows like The Awesomes to Deadbeat.

Exclusive Rights Deals

Currently, Hulu is focussed on acquiring rights to exclusive content and original series in order to lure potential users. This January, the company gained exclusive rights to stream “Lifetime’s critically acclaimed drama series from A+E Studios, UnREAL” [11] This move, which gambled on the success of a critically acclaimed show after it’s first season, highlights the mindset of much of the company’s moves thus far in 2016. In addition to UnReal, Hulu also picked up the rights to Chance, “a provocative psychological thriller that focuses on a forensic neuropsychiatrist who reluctantly gets sucked into a violent and dangerous world of mistaken identity, police corruption and mental illness” [12].

On January 27, Hulu announced a “landmark output deal” with IFC Films that makes “Hulu the exclusive streaming home for all future documentary releases from IFC Films, which will include all documentaries from the brands IFC Films, Sundance Selects and IFC Midnight” [15]. In a first-of-its-kind deal, all IFC films will now go directly from theaters to the Hulu platform in the first “one-window” agreement of its kind [15].

Curious George [17]

In March, Hulu and Universal announced a deal that gives the platform exclusive rights to the Curious George series for past and future releases within the window of a three-year deal [16]. In total, Hulu users “gain access to all nine seasons – over 100 episodes – of CURIOUS GEORGE^® TV series”. Additionally, Hulu will be the home to all Curious George feature-length films and the destination of “direct-to-TV specials” [16].

Content Creator

Aside from picking up the rights to existing content, Hulu sees itself as a platform for content creators to flex their muscles. Speaking at the Code/Media conference, CEO Mike Hopkins said, “What we’re trying to do is give creators the resources they need … and go for it” [14]. While the company is “lacking a defining show like “Orange Is the New Black” or “Transparent,” [14] Hulu is confident in its ability to win bidding wars for broadcast smash-hits, something apparent in the company’s success at beating out Netflix and HBO Go for the rights to Fox‘s Empire.

Virtual Reality

On March 24, Hulu announced the launch of it’s virtual reality application. Available on Samsung’s Gear VR platform, Hulu says that it will be bringing all current content to the app and will be “augmenting the experience with some of the very best 360-degree video content available” [18]. Additionally, the company states that users will be able to “watch the entire Hulu 2D library in immersive 360-degree environments” [18].

Overview

With the competitive world of OTT streaming as fiery a battle as ever, Hulu sees to distance itself from the competition by providing its users with innovative, exclusive content. To reel in new customers, the company hopes to be the first to strike gold in new ventures such as virtual reality and will continue to hope that its licensing deals continue to drive revenues.

Sources

[1] http://www.freelogovectors.net/hulu-logo-eps-file/

[2] Dan, Avi. “GE’s CMO Beth Comstock Inspires Innovation Through Instigating.” Forbes. Forbes Magazine, 19 Apr. 2012. Web. 25 Apr. 2016. <http://www.forbes.com/sites/avidan/2012/04/19/ges-cmo-beth-comstock-inspires-innovation-through-instigating/#61e6696d3de4>.

[3] Jason Kilar, Chief Executive Officer of Hulu LLC, Speaks during A…” Getty Images. N.p., n.d. Web. 25 Apr. 2016. <http://www.gettyimages.com/detail/news-photo/jason-kilar-chief-executive-officer-of-hulu-llc-speaks-news-photo/123197454>.

[4] About Hulu.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/about>.

[5] Stelter, Brian. “Fox to Limit Next-Day Streaming on Hulu to Paying Cable Customers.” The New York Times. The New York Times, 26 July 2011. Web. 25 Apr. 2016. <http://www.nytimes.com/2011/07/27/business/media/fox-to-limit-next-day-streaming-on-hulu.html>.

[6] Wasserman, Todd. “Hulu to Get Current Season of Gossip Girl and Other CW Content.” Mashable. N.p., 28 Oct. 2011. Web. 25 Apr. 2016. <http://mashable.com/2011/10/28/hulu-gossip-girl-cw/#0f8HZKPPEsqq>.

[7] Hulu BBC Deal: A Positive Step After Some Cloudy Times » CEOWORLD Magazine.” CEOWORLD Magazine. N.p., 18 Sept. 2013. Web. 25 Apr. 2016. <http://ceoworld.biz/2013/09/18/hulu-bbc-deal-a-positive-step-after-some-cloudy-times>.

[8] Perez, Sarah. “Showtime Becomes The First Premium Service To Be Offered By Hulu.” TechCrunch. N.p., 23 June 2015. Web. 25 Apr. 2016. <http://techcrunch.com/2015/06/23/showtime-becomes-the-first-premium-service-to-be-offered-by-hulu/>.

[9] Emami, Gazelle. “Morgan Spurlock ‘A Day In The Life’: Original Series Premieres On Hulu (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2011/08/17/morgan-spurlock-a-day-in-the-life_n_929008.html>.

[10] Gates, Sara. “Hulu Expands Original Content, Announces Three Series And Seven Exclusive Shows (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2012/05/21/hulu-expands-original-content_n_1532718.html>.

[11] Smiley, Minda. “AT&T Strikes Deal with Hulu to Offer Subscription Service to Its Customers.” The Drum. N.p., 25 Apr. 2016. Web. 25 Apr. 2016. <http://www.thedrum.com/news/2015/05/14/att-strikes-deal-hulu-offer-subscription-service-its-customers>.

[12] News.” TV Shows and Movies. Ed. Press Admin. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-acquires-exclusive-svod-rights-to-unreal>.

[13] News.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-picks-up-chance>.

[14] CHMIELEWSKI, Dawn. “Hulu Finally Gets Serious With Original TV Series — But Is It Too Little, Too Late?” Recode. N.p., 18 Feb. 2016. Web. 25 Apr. 2016. <http://recode.net/2016/02/18/hulu-finally-gets-serious-with-original-tv-series-but-is-it-too-little-too-late/>.

[15] Press Admin. “HULU STRIKES FIRST EVER DEAL FOR PAY ONE WINDOW RIGHTS WITH IFC FILMS.” Hulu.com. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-strikes-first-ever-deal-for-pay-one-window-rights-with-ifc-films>.

[16] Press Admin. “HULU and UNIVERSAL INK GROUNDBREAKING DEAL FOR CURIOUS GEORGE® TV.” Hulu News. N.p., 17 Mar. 2016. Web. <http://www.hulu.com/press/news>.

[17] http://www.rivercenter.org/event/curious-george-2/

[18] Press Admin. “Hulu Launches Virtual Reality Application.” Hulu News. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-launches-virtual-reality-application>.

[19] Press Admin. “Executives.” Hulu Executives. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/executives>.

Hulu

Link

by Sarah Thaler

Hulu LLC
12312 West Olympic Boulevard
Los Angeles, CA 90064
Phone: (310)-571-4700
Fax: (310)-571-4701
www.hulu.com

Company Overview
Both a website and over-the-top subscription service, Hulu provides online video streaming of a wide variety of video that range anywhere from current hit television series, movies, and webisodes to behind the scenes footage and movie trailers from an array of networks. In it’s current standing, Hulu is only offered to residents of the United States and Japan; regions outside of these countries are blocked by an IP address location. The Hulu platform allows users to access content through internet-receiving devices such as popular gaming consoles like the “Wii” and “Xbox”. Internet-viable televisions, set-top boxes, tablets, and of course, the PC are also used to transmit content instantly. Hulu’s display presents content in a flash video format to ensure speedy streaming and high-quality resolution; selected media can be streamed in HD depending on the network providing the syndicated content. Web syndication services are also provided by Hulu to companies like Facebook, AOL and Comcast to keep users within reach of supported affiliates. Hulu was created in 2008 initially by Beth Comstock as a joint venture of NBCUniversal Television Group (Comcast), Fox Broadcasting Company (21st Century Fox) and Disney–ABC Television Group (The Walt Disney Company), and was partially funded by Providence Equity Partners. However, in October of 2012, Providence Equity Partners sold it’s ten-percent share of Hulu LLC and is no longer a part of its holdings. [1] [2]

Key Executives: [2]

Mike Hopkins [a]

Chief Executive Officer

Chadwick Ho [b]

Senior Vice President and General Counsel

Elaine Paul [c]

Chief Financial Officer

Jean-Paul Colaco [d]

Senior Vice President and General Manager of Advertising

Financials

Hulu’s ad-supported business model is portion of it’s revenue along with customer purchases of subscriptions to Hulu plus. Because Hulu is a private holding, quarterly financials are not reported or disclosed to the general public. However, former CEO Jason Kilar revealed the 2012 figures, along with the numbers Hulu has achieved in the past five years in a blog post that wrapped up the fiscal year to perhaps illustrate the stark progression in the company’s net value. In 2012, Hulu broke records generating a 65% increase from their 2011 numbers and grossing $695 million in revenue, an all-time high for the company. [3] [4]
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The Hollywood Insider briefed Hulu’s 2012 financials as well and reported that:

“The Hulu Plus subscription product, which launched in November 2010, boasts 3 million paying subscribers today, more than twice what they were at the end of 2011.The service increased title offerings by 40 percent in 2012 to 60,000 TV episodes, 2,300 TV series and 50,000 hours of video on Hulu and Hulu Plus. Kilar also said Hulu spent more than $500 million to acquire content this year.”

Viewership and Programming
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Viewership numbers of Hulu users are measured through the same rating companies that track other media-viewing platforms such as Neilson, Quantcast, and ComScore. According to their findings, viewership numbers are steadily decreasing despite their impressive revenue for the 2012 fiscal year dropping from 19 million viewers in December 2011 to 12 million in August 2012.

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Hulu’s current content partners (NBC, ABC, Fox, Current TV, ION Television, USA Network, Bravo, Fuel TV, FX, NFL Network, Speed, Big Ten Network, Syfy, Sundance, E!, G4, Versus, A&E, Oxygen and online comedy sources such as Onion News Network) allow the company to distribute their content on the Hulu website while Hulu reaps (on average) thirty to fifty percent of the advertising revenue generated by the shows it distributes.

Watch Battlefield trailer here

Hulu does have a few of their own original content segments that air exclusively on their webisode-style platform. In 2011, the launch of their first series “The Morning After“, a satirical, comedic news show, on Hulu plus. This marked a moment in the company’s transition from a strictly content-distributing-only business model to one of both content distributing and producing. In January 2012, Hulu announced the release of their first scripted program “Battleground”, a political drama series shot in through a documentary style lens to air on the free Hulu platform to appeal to wider audience numbers. Also included in Hulu’s repertoire of original content are “The Fashion Fund”, a female-audience geared reality series where the winner of the show will receive $300,000 to start their career in the fashion industry, “Up To Speed” a historical travel series, and “A Day In the Life”a documentary series that follows a musician and producer.

^{In April of 2012, Hulu added four more shows to their list that they have promised to air in the next few years if funds and viewing numbers permit; We Got Next, The Awesomes, Don’t Quit Your Daydream, and Flow. Today, Hulu has joined forces with BBC to create a series that satisfies consumer craving for British humor and comedic thrill; “The Wrong Man” [5] [6]}

^{Watch The Wrong Man trailer here}

What’s Next?

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Hulu continues to grapple with possible methods of surpassing it’s big-name competitors such as Netflix, Youtube, iTunes, and Amazon. To separate themselves from the rest, Hulu aims to keep their content on the cutting-edge and easily streamable for its users.

pay-TV bundles: The Wall Street Journal on November 12th 2013 posted an article discussing Hulu’s interest in offering subscribers pay-TV bundles. Hulu has recognized that binge watching has become a shameless trend in viewership. According to the journal article companies willing to participate and partner with Hulu in the projected route to pay-TV are Comcast Corp., Time Warner Cable Inc., Cox Communications Inc., AT&T Inc.,and Verizon Communications Inc. Hulu has also discussed arrangements with AT&T to bundle its Hulu Plus subscription service with their wireless broadband offerings. [7]
HuluPlus integration with iOs and Chromecast: On October 21st, 2013 Hulu announced on it’s official blog that HuluPlus will be adding iOS support for Google’s popular Chromecast device, which plugs into any HDTV to let users watch online videos from tablets, smartphones or computers. HuluPlus first came to Chromecast on iPad and Android. The HuluPlus app also allows users to browse content, pause shows and add episodes to a queue, while simultaneously “casting” it to a TV. The Hulu Plus integration with Chromecast will convert the app into a custom remote letting users control video on their Chromecast connected TVs, while allowing them to browse the Hulu Plus app directly from their iPhones as well. [8] [9]
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