If Hulu Comes To iPad, Content Won't Be Cheap
The networks are definitely trying to make Hulu happen on the iPad, but some new intel shows the main person paying for the transition will be you - - the consumer.
Peter Kafka of AllThingsD has the scoop from inside sources:
The problem is figuring out a way to keep the existing site free while adding new bells and whistles that consumers pay for. One idea the company and its backers like: Turning Hulu from a "one screen" service--one you're only supposed to watch on your computer--to a "three screen" offering by adding support for TVs and mobile devices.
"Just three screens alone is pretty enticing," for consumers, says an executive at one of Hulu's parent companies.
If you want, you can hook up your computer to your big-screen TV with a cable and watch Hulu that way. But Hulu hasn't aligned itself with devices and software that make the process easier, as Netflix has. Meanwhile, there's no Hulu for devices like Apple's iPhone, even though rival YouTube, owned by Google, loves smartphones.
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All the sources I talked to cautioned that Hulu and its owners had yet to agree on a definitive plan for a premium service. And this needs to be resolved before they can tackle device-specific issues.
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And if Hulu decides to define the iPad as a mobile device, it would also need its content owners to grant it mobile rights, which it doesn't actually have. Again, doable. But the broadcasters are already making money from other mobile services, like Verizon's V Cast. So they have to tread carefully.
Here's why Hulu programming won't be cheap on the iPad:
- Renegotiating licensing on new platforms: According to several sources, Hulu didn't have the forethought or the wherewithal to include mobile rights in the broadcast agreement. The content owners now have the upperhand in negotiations, especially if Hulu is going to launch in time for the iPad next month.
- It's not the only mobile game in town -- by far: Furthermore, as Kafka notes, there are several, more established players in the mobile front, such as Verizon and Apple itself. Unless Hulu suddenly seems like a necessity -- which it isn't yet -- the content providers will be setting the pace.
- Hulu wants to make money pronto: With site maintenance, fancy commercials, long-free content and, well, Hulu itself, it's clear 2010 is the year it needs to make money. The advertising model isn't bringing in money on the web, so there is little to no reason to think its current ad model will work right now in the mobile space. The money will have to come from the user.
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