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7 Quick Reactions to Hulu Plus
Hulu unveiled its much-rumored subscription service this afternoon, dubbed
"Hulu Plus." I haven't used the new service, but based on the explanation and the teaser video, here are 7 quick reactions:
1. Is there consumer demand for Hulu Plus? - This looms as the fundamental question that will be answered as Hulu Plus rolls out. From CEO Jason Kilar's blog post, it appears that, at least initially, Hulu Plus is a bet on consumers having an appetite for a library of broadcast network programs since that's all that's been highlighted so far. Hulu identifies about 2,000 library episodes in addition to current seasons. Unless Hulu Plus really beefs up its catalog, it won't be long before the library holds few surprises for returning visitors.
2. Hulu Plus lacks many of Netflix's advantages - It's tempting to think of Hulu Plus competing directly with Netflix, and to an extent of course they're after the same general target consumer. But Netflix has several very significant advantages: a brand that's identified with subscriptions and 14 million+ currently paying subscribers, a deep DVD library of 100,000+ titles (which has every single episode Hulu Plus will be offering), a streaming library of 17,000+ titles (offered at no extra cost to subscribers) and integrations with all the same devices Hulu Plus is touting (except the iPhone, which is coming soon). Further, Netflix has far deeper resources; it is a public company with a $6 billion market cap that spends $250 million/year on marketing and has publicly-stated commitment to obtain more streaming rights from Hollywood. With Netflix on one side and cable on another, it's unclear how Hulu Plus will expand its menu. I don't see Hulu Plus diminishing Netflix's rapid growth.
3. Ads in Hulu Plus would be a big-time buzz-kill - I did a double-take when I first read this line in Jason's post: "Hulu Plus is a new revolutionary, ad-supported subscription product that is incremental and complementary to the existing Hulu service." Whoa - are there going to be ads in Hulu Plus? That will be a flat-out non-starter for many prospective subscribers. Yes, I know about ad-supported cable networks, but that's for first-run programming, not for library or catch-up fare. Hulu Plus must be an ad-free zone. Meanwhile, it's important that Hulu still prove the 100% ad-supported business model for its existing experience. With much in flux regarding ad loads there's new messaging Hulu will likely be rolling there too.
4. Why wasn't Android or Google TV mentioned? - Is it a little weird that there was no mention of Android or Google TV in today's unveiling? I think so. Android is fast-gaining on the iPhone (surpassed by some metrics) and Google TV is poised to make a big splash in the fall. Why no mention? Is there an anti-Google bias at work?
5. Hulu Plus adds more support for HTML5 - Hulu Plus is another boost for HTML5 and another small dent for Flash. By making Hulu Plus available on non-Flash supported Apple devices, the it seems the Hulu team has been willing to make the investment to diversify beyond Flash, which it has used since launch.
6. Comcast must already be considering how it exits the Hulu joint venture - When the Comcast-NBCU deal clears, Comcast will inherit NBCU's ownership stake in Hulu. With Hulu Plus it's hard to see why Comcast will want to retain that stake. There's no discernible benefit to Comcast owning a minority position in a new over-the-top subscription service that whets the appetite of potential cord-cutters. It's one thing for selective NBC programs to be freely available for catch-up on Hulu.com, but a deeper library in a paid subscription service? No way, especially not as Comcast is trying to build value in its own TV Everywhere service.
7. Hulu gets credit for a well-executed launch - Stepping back, the Hulu team deserves credit for keeping its subscription under tight wraps and executing a solid launch. There have been no shortage of rumors, but to my knowledge there haven't been any specifically identifiable leaks in the Hulu ship. That's a big accomplishment, especially when you consider how many people must have had knowledge of the plans. The launch includes a well-articulated CEO message, a nicely-done sizzle reel (that is in Flash, which makes it not viewable on the iPad or iPhone!), several device integrations and a roadmap of add-ons, and a slow-rollout plan that will generate excitement among early adopters.
There are still many unknowns about Hulu Plus, but for now this is plenty to chew on.
What do you think? Post a comment now (no sign-in required).Categories: Aggregators, Broadcasters
Topics: ABC, Android, CBS, FOX, Google, Hulu, NBC
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Katzenberg's Right, the DVD Ownership Era Seems All But Over
At the tail end of an interview with Walt Mossberg at the recent D8 conference, Jeffrey Katzenberg, CEO of Dreamworks Animation SKG, and a long-time Hollywood executive, argued that rapidly-declining DVD sales are "systemic," and should not be considered a "secular" downturn that will reverse itself when the economy improves. Katzenberg believes that what's really at work are fundamentally changing consumer habits. He argued that with DVDs costing $20 or more, consumers are questioning the value of ownership since there are so many other ways to access the film on an on-demand basis (he mentioned Netflix, Blockbuster, Redbox, VOD, iTunes as among the options).
I agree with Katzenberg, but would take his argument one step further. While it is no secret that there are more options than ever for accessing content (as mentioned above), of even more significance is that technology awareness and aptitude - the prerequisites for taking advantage of the choices now available - are deeper and more diffuse in our society than ever.
Categories: FIlms
Topics: D8, Dreamworks Animation SKG, Jeffrey Katzenberg
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Here's What Fox, NBC and Hulu are Doing with Increased Online Ad Loads
Get ready to see more ads in TV programs viewed online. Following my exclusive 2 weeks ago about ABC doubling the number of ads in its iPad app, and soon on ABC.com, the same increased ad load is happening with Fox's and NBC's online programs, and in my opinion, likely with Hulu as well. Here's what I've learned:
Categories: Advertising, Broadcasters
Topics: ABC, CBS, FOX, Hulu, NBC
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Althea's Shufflr Social Browser Launches
Althea Systems' Shufflr, will launch today, another newcomer to the crowded lean back video browser space. It attempts to be an all-encompassing social video, search and recommendation engine in one platform. Called "Shufflefeed," it crawls the web ingesting video metadata in an attempt to make a smarter recommendation engine. Althea's CEO, Vinod Gopinath, who I had a chance to talk with last week, explained their belief that a greater service will come out of bringing all of these components together and more importantly mining all of the data.
Shufflr has been available for the past couple of months under an unpublicized open alpha and has attracted thousands of users worldwide. The browser has a slick and intuitive 10-foot optimized interface and focuses solely on video. The videos are shown in a wall format and are fun to scroll through. As for the content, rather than grouping by show or content partner, such as Clicker, Boxee or Roku, it is split into three main verticals, Recommendations, Friends Activity, and Buzz.
Categories: Startups
Topics: Althea Systems, Shufflr
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YouTube Surges to Almost 15 Billion Views in May
comScore has released its May online video rankings and at the top of the list, as usual, is YouTube. In May it racked up a record 14.6 billion video views, up 11.5% from April. YouTube's market share actually dipped slightly in May, to 43..1%, still its 3rd-highest monthly share since comScore began releasing this data in Jan '07. Total video views were also at a record high of 33.9 billion views in May.
The chart below shows how remarkable YouTube's growth has been since Jan '09. YouTube has more than doubled its monthly views from 6.3 billion. Meanwhile, YouTube's market share has hovered right around 40% each month, with its lowest level at 37.7% in Oct '09 and its highest of 43.5% in April '10. YouTube is generating more than 10 times the monthly views it was when Google acquired it.
Categories: Aggregators, Music
Topics: comScore, Hulu, VEVO, YouTube
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Clearleap and Roku Partner, Blurring Traditional Video Distribution Boundaries
Clearleap, a web-based TV technology platform, and Roku, maker of the popular digital video player, are announcing a partnership this morning that blurs the boundaries between traditional and broadband-centric video
distribution. The partnership enables incumbent Pay-TV providers to deliver premium content, including their own video-on-demand (VOD) libraries, plus supplemental online video, to their customers via Roku boxes. As a result, instead of Roku being thought of as one of the "over-the-top" disruptors of the existing video ecosystem, the Clearleap deal will help it - and other connected devices to follow - potentially find a role working with Pay-TV providers to extend their services.
For industry analysts like me, the deal is a bit of a mind-bender; when I got a sneak preview of the implementation at the Cable Show in LA last month I had to ask more than once about the context and motivations of the parties involved. I refreshed my understanding earlier this week in phone calls with Braxton Jarratt, Clearleap's CEO and co-founder, and Jim Funk, Roku's VP of Business Development.
Braxton explained that several of Clearleap's cable operator customers have acknowledged the expanding role of online video viewership (e.g. Netflix, YouTube, Amazon, MLB, etc.) via connected devices and are growing concerned that they pose a double negative: diminishing the importance of operators' own video services while also generating additional network traffic, but no incremental revenue upside (assuming the broadband user stays beneath their data cap and doesn't need to upgrade their service tier).
Categories: Cable TV Operators, Devices, Partnerships, Video On Demand
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Verizon Launches Droid X; Video is a Key Proposition in Battle with iPhone 4
Verizon officially unveiled its latest Droid smartphone this afternoon, the Droid X from Motorola, running Google's Android 2.1 mobile OS (with an upgrade to Android 2.2 planned for later this summer). I've been following
coverage this afternoon, and aside from all of the other cool new features, what resounds most for me is how video-focused the device is, and how strongly Verizon will be promoting this. I've previously said that video would move to the forefront of the ferocious smartphone battle underway between Google (with Android) and Apple (with the iPhone). With the Droid X launch, and the recent HTC Evo from Sprint (which I've been testing and will report on next week), plus numerous others to follow, I'm convinced that we are now getting into the thick of things.
From what I've read about the Droid X, there are 3 dimensions of the video proposition, each of which stacks up differently with the iPhone 4: (1) shooting video, in 720p HD, (2) watching video on the device's 4.3 inch 854 x 480 resolution screen, and (3) connecting the device via DLNA over a home network or via an HDMI-out port to your widescreen TV.
Categories: Mobile Video
Topics: Android, Apple, Droid, Google, Motorola, Verizon
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thePlatform Unveils Support for Numerous Over-the-Top Devices
thePlatform is announcing this morning that it has integrated with numerous "over-the-top" consumer electronics devices, enabling its content customers
to more easily deliver online video to them. Devices cited are boxee, Roku, TiVo, Vudu (which includes connected TVs and Blu-ray players from LG, Mitsubishi, Samsung, Toshiba and Vizio), DivX devices, Syabas (popbox), FlingoTV and others to come (including Google TV when ready). I caught up with Marty Roberts, thePlatform's VP of Sales and Marketing yesterday to learn more.
Marty explained the impetus was thePlatform's content customers telling the company they want to generate more video views and have easy access to the range of OTT devices coming to market. While conceding that the universe of all these devices combined is still probably in the low single-digit millions, thePlatform and its content customers are betting on future growth. The move is significant as it underscores the mindshare that direct access to TVs via broadband and connected devices has gained in the content community.
Categories: Devices, Technology
Topics: Boxee, DivX, FlingoTV, Google TV, LG, Mitsubishi, Roku, Samsung, Syabas, thePlatform, TiVo, Toshiba and Vizio, VUDU
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