I have to say, I chuckled a little when I read this morning's Online Media Daily story, "Opening a Pandora's Boxee" about a new report from Laura Martin at Soleil Securities titled "Content's $300B Gamble." I haven't read the report, but the article says that it expresses concern that ad revenues for programs watched online could be 60% lower than when watched on-air, "threatening TV's the TV platform's price umbrella."
The reason I chuckled is because I've been saying the same things for months now (for example, see "Broadcast Networks' Use of Broadband is Accelerating Demise of Their Business Model" and "OK, Hulu Now Has ABC. But When Will It Prove Its Business Model?") It's nice to see others starting to understand these important issues as well.
Recently I've had a number of conversations with TV and broadband executives who are similarly concerned about what role Hulu is going to play longer term for the broadcast industry, given the current absence of a proven business model for the site. There are some pretty strong feelings out there, ranging from "Hulu is totally misguided and will be the downfall of the broadcast industry" to "the Hulu team is so smart, they're bound to figure it out." One way or the other, with Hulu's growing popularity, I continue to believe that the broadcast industry's fortunes are increasingly tied to Hulu's financial success.
What do you think? Post a comment now.