Hulu Plus Subscription Service Officially Announced
Watch Hulu anywhere, so long as your paying
After months of rumors, Hulu has finally announced its new television subscription service Hulu Plus which streams shows straight to computers, mobile devices and televisions. A new way of watching tv instead of cable or satellite receiver. And for the lowly price of $9.95 per month, although cable and satellite companies are not far behind them in offering an online service.
The new service consists of “season tickets” to every episode of every show on ABC, NBC and Fox, both this season and past seasons on demand. This consists of around 2,000 episodes, available in HD 720p resolution(so long as your broadband connection can handle it). It will still be the case though, that shows are aired on both the free Hulu andd Hulu Plus the following day after they air on ‘normal’ tv. The paid service comes on top of the TV episodes that remain free to watch on Hulu.com.
For the first time ever, Hulu Plus (owned by Disney, NBC Universal, News Corp and Providence Equity Partners) will be available on the new Apple ipad and Iphone models plus internet-connected televisions and Blu-ray players. The Sony PS3 gets Hulu in July and the Microsoft XBox 360 early next year.
Competing with cable was dismissed by Jason Kilar, Hulu’s chief executive, who said in an interview that he sees Hulu as a supplement and not a replacement for cable subscriptions. “I see them as apples and oranges,” he said.
Hulu Plus may propel the almost three-year-old catch up tv website increase revenue and interest media companies that want more for their shows than a cut of advertising revenue. Mr. Kilar said that Hulu would share subscription revenue with partners, but didn’t elaborate about specific agreements.
“You could easily see a situation where a portion of the subscription fees could be allocated based on consumption, and a portion could be allocated based on a fixed agreement,” Mr. Kilar said.
The new paid service is an attempt to stay ahead of viewing habits and a move to grab consumers who want more flexibility to watch shows when and where they want to without paying multiple times. According to eMarketer, the percentage of US adult web surfers who watch full-length tv shows on the internet is expected to grow to 72 million in 2011, up from 50 million in 2009.
Mr Kilar said that Hulu would gradually invite more users to the new service as it works out kinks. People familiar with the matter said last week that a goal is to open Hulu Plus to the general public in time for the fall television season.
So will Hulu Plus be a success? After building its reputation around offering free content, Hulu may struggle to lure subscribers. Some users will likely be reluctant to pay only for older episodes when they can watch new ones for free. It could be a good way to catch up on missed seasons or even entire shows you missed, and it is a supplement to your existing entertainment. However as it currently only delivers tv shows from three networks, it is not a reason to cut the cord – yet.
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