TheONbutton Durham Computer Services

Remote IT Support and Computer & Technology Help in Durham, Chapel Hill and Raleigh NC

Hulu Plus and the cost of coming second

When Netflix launched its online streaming service it was anyone’s guess as to whether it would catch on. For years now the Berman living room PC has been our primary source of couch media. Between Windows Media Center, Netflix and more recently Hulu and Fancast, our TV needs are fully served. But we still haven’t adopted Hulu Plus.

Around a year ago when we found we were gobbling 90% of our Netflix food online and only a snack through the mail, we cut down from two DVDs per month to one. The online selection has become enormous, with movies such as Ironman, the new Star Trek and Wall-E available through the pipe. We’ve also consumed all eight days of 24 over Netflix this year. It’s little wonder that recent stats suggest 20% of all US peak internet traffic is Netflix streaming.

So when Hulu Plus came along offering content WITH commercials for a dollar MORE a month than Netflix, I wasn’t really interested. We were already in the Netflix ecosystem; all our large screen devices (Windows Media Center, iPad, laptops) support Netflix and most importantly in the living room Netflix works with a simple remote control on Windows Media Center or the Xbox. In my household Hulu Plus was paying the price of coming to market a late second. Sure, Hulu Plus offers different TV content to Netflix but its overall library is weaker, due to its relative lack of quality movie titles. Hulu is also coming out with a remote control interface, but it’s not in production release yet.

It looks like I wasn’t alone. Rumors are circling about a possible 50% Hulu Plus price cut, which can only be a result of a lower than expected adoption rate. At $4.95 per month the service would definitely be more tempting than the current $9.95, but the most frustrating part of the Hulu experience remains i.e. the ever increasing amount of commercials. Ad breaks on Hulu have rapidly increased from an acceptable 30 seconds to around 2 annoying minutes, and I’m sure that duration will continue to increase. With Netflix being commercial free, Hulu Plus will always have a hard time convincing consumers to pay for an ad-supported service when much of its content is available on its free site.

I’m guessing therefore that the real objective of a lower Hulu Plus subscription price would be to remove the free service altogether when subscriber numbers reach critical mass.

Neil Berman

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Oct 24, 2010 - Posted by | Analysis, Home Theater, Photo & Video, Software | , , , ,

1 Comment »

  1. […] network-sponsored ad-supported content aggregator for this long.  I recently wrote about the price Hulu Plus is paying for coming second and concluded that we are all going to be asked to share that cost by upgrading from Hulu to the […]

    Pingback by Enjoy Hulu while it lasts « theONbutton | Nov 11, 2010 | Reply


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