Wetpaint CEO Ben Elowitz on the Future of Digital Media
Dawn Chmielewski and Meg James reported tonight that Hulu will begin testing a $9.95 “Hulu Plus” subscription offering as soon as May 24. According to their LA Times article, the Hulu Plus offering will open access for viewers to watch many more shows than are currently offered. (Hulu’s content license restrictions currently allow viewers access to only the five most recent episodes for most shows.)
Last month, I wrote that for Hulu, advertising won’t be enough. Tonight, I predict Hulu’s subscription program will be successful with consumers, and will be a business success for Hulu.
First, here’s why — unlike many other subscription programs — Hulu’s will work:
Net, this is an impressive combination. Unlike many of the subscription offerings being floated by others, which move information that can be found in many places behind a paywall, Hulu’s offering is unique enough and compelling enough that it’s worth consumers paying for.
As for the business benefit to Hulu, they are already receiving high monetization. At reported $100MM annualized revenues over comScore-reported 695MM pageviews per month, Hulu already monetizes at $12 per 1,000 pageviews. Even if subscribers view 10 times as many pages per month as average users, Hulu will still more than double its revenues from those customers.
With an outstanding value proposition and great monetization potential, this subscription program is a win-win for Hulu and its audience.