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Hulu CEO Makes The Case For His Company

Feb 7, 2011

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Sarah Handel

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I spent an immoderate amount of time this weekend catching up on the NBC series Parks & Recreation, due in no small part to Linda Holmes' lobbying on Monkey See. But in the moments between laughter (it really is quite good), I was contemplating something else entirely: my satellite TV service.

See, I caught up on the show thanks to the Roku and a Hulu Plus subscription. My sister and brother-in-law have a very basic line-up of channels, which they augment dramatically thanks to the little digital video player and the video service. Honestly, the only thing I'd miss in that set-up is live sports. Other than that, I couldn't really see what my much-more-than-$7.99-per-month satellite subscription gets me.

Hulu CEO Jason Kilar hopes a lot of you are experiencing similar doubts. In his blog post announcement that The Daily Show and The Colbert Report have returned to Hulu, he also laid out the reasons he believes his services — Hulu's free, ad-supported streaming, and the $7.99/month Hulu Plus subscription — will change the way the entire television industry works.

It is clear to us that — because of the internet and the increased competition/innovation it brings — the future of TV is going to be very good to users, advertisers and content owners/creators. Users will have convenient access to much more content. We also expect to see lower consumer prices, which will be a function of a marked increase in distribution competition. Advertisers will be able to efficiently and effectively target their messages to just their desired audience, thanks to the internet medium. And content owners will have the opportunity to make higher financial returns, which will be a function of disciplined per-user per-month licensing strategies, along with the benefits that come with intensified distribution competition.

Only time will tell, but in his vision, it doesn't look good for cable and satellite companies on the distribution side.

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