Most people know what Hulu is. It is an online streaming service known for mostly shows. If you haven't heard what Hulu is, well this is not the post for you really, you can go find out more about Hulu online through their website. I have Hulu, and had it for a pretty long time. I don't really complain about it, but there is more to it than meets the eye, and that is exactly what I usually try to reveal what doesn't meet the eye.
Hulu is owned by three different companies: 21st Century Fox, The Walt Disney Company, and NBCUniversal Television Group. Now we all know very well who these companies are and what a major role they have in a lot of things we see everyday. Let's start with the simple things. Hulu allows you to see episodes the next day they air from: NBC, ABC, Fox and the CW. Now out of those four we know two own Hulu directly, and the third is ABC which is owned by Disney. The interesting thing is Hulu, as of April, have over 4 million subscribers. Each subscriber pays $7.99 for the right to see most of these episodes the next day, with commercial breaks. Now if we do the simple math that is average $31.9 million a month from subscribers alone, that is not including ad revenue, which a video usually have 3-5 commercial breaks. Each commercial break can last anywhere from 15 seconds to 90 seconds.
Now if you are like me and have a cable TV subscription well we all know that we pay a hefty amount of money for that every month. Now here is the interesting thing, Hulu claims that they have ads because the cost of having next day airing rights is expensive, and it alleviates some of the cost by bringing in ads that play on top of the subscription we pay every month. Here is the problem: Hulu is owned by these three companies which 3 out of 4 of the channels that bring next day air programming into Hulu already own the rights to these shows. So let's analyze this from a perspective: We pay for our cable subscription which allows us to view on demand programming online and in most cable TV subscription set top boxes. To this include the payment of Hulu of every month for content that you already paid for and that Hulu already made the revenue from in the previous day through commercial breaks on the TV channels. Then add the fact that they have ads to bring in more revenue. A lot of people that pay for Hulu do not know that by simply having a cable subscription you can just go to the channel's website and login with your cable tv provider and watch the same show you are paying to watch in Hulu.
When you simply look at it, Hulu is just an add-on for big companies to bring more revenue out of already paid content; really it is that simple. What gets to me is the fact that Hulu doesn't remove the commercial breaks, but also charges the subscription cost to watch something that well they already made revenue from. Now I understand that they have to charge, I mean they already charged the cable tv subscribers for it. Well then you have to choose one of two sides, either remove the ads and keep the subscription model, which is what I find more favorable. Or remove the subscription model and just let the ad revenue take over.
We all know that the powers that rule Hulu are never going to make the changes, they are making way too much money to start thinking about their customers now. But this shows that the cable tv industry is not just that cord that goes to your TV, but it is also everywhere we look, including services like Hulu. All we can do is know the truth behind these facts and be informed, which is why I felt like I had to write about this.