The New Stuff

HULU Videos: To Ad or Not to Ad

When it comes to viewing videos online, most likely, Google's YouTube comes to mind. In fact, the net shaping sensation has easily become synonymous with online video entertainment. However, Hulu, which launched three years ago, is now a close second with the hopes of surpassing YouTube in the near future.

Hulu's revenue for the first year in 2007 was $25 million – not too bad, but peanuts compared to 2010's projected $240 million, a 125 percent jump from $108 million one year ago. According to Reuters, CEO, Jason Kilar, announced at the NewTeeVee Conference in San Francisco that Hulu is considering raising their public offering from $200 million to $300 million, which would value the company at an astounding $2 billion in just three short years. Ah... the figures of new media!

According to Kilar, Hulu currently has more than 235 content providers including a battery of hit TV shows such as “Glee” which contributes greatly to the 30 million viewers clicking around their video library in the past month alone.

But what about those vexing ads you can't fast forward through to get to your program? Well, Kilar touched on this as well at the conference. Presently, all of the top 25 American advertisers purchase spots on Hulu. Admittedly, Kilar agrees that a completely ad-free Hulu is ideal for the viewer... but even we know that's not going to happen without the us the viewers shelling out plenty of subscription dough. Common, let's face it. Behind every entertaining moment there's an underlying dollar sign. Kilar did however have a suggestion that might make ads less sobering. Unlike television commercials, when an ad pops up on Hulu that you don't like, you have the option to choose another one that interest you. This could work. Who hasn't said before, “Oh watch this... I love this one.”? If this new idea does come to fruition, the auspicious effect would result in us being more engaged, hanging at the site longer, and ultimately allowing the bigwigs' pockets to grow. The perfect circle of life.

One thing is certain: With or without ads, Hulu's numbers prove Americans are addicted to this new wave of media delivery which unequivocally will only grow in the future – along with Hulu's and contending video site's net worth’s.

Now, if you've spent more than four minutes absorbed in this article, please stay tuned. We'll be right back after these messages.

{image from MediaBeat}

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