Sullivan,+T+Final+Report+Proposal

Sullivan, T

To: Proximity Video Teams From: Tommy Sullivan Date: Subject: Final Report Proposal

Hulu has won the battle of becoming the dominant website where people go to stream TV shows online. It now has the dilema of staying with their current plan of not charging viewers to watch the shows or to decide to become a premium site and start charging. I propose to write a report on why websites that stream video should not switch to premium.


 * Needs**

The old way of watching TV shows is gone.
 * Gen Y is now watching streaming videos online through Hulu whenever it fits their schedule
 * Gen Y doesn't like paying for the content, so the money has to come from somewhere
 * Gen Y is streaming video through the newest mobile devices

It's unknown at this time if Hulu.com will eventually start offering premium video on their site. However, if the switch is made, there could be a significant difference in the number of people viewing the site, which is an important aspect when it comes to advertising.

Clients of Proximity who wish to target Gen Y consumers need this report to understand the thought process of Gen Y when it comes to watching premium television so they know how to how to reach Gen Y through TV advertisements.


 * Topics**

The proposed report, "Switching to Premium, is it Worth it?" will cover the following topics:


 * Hulu's current formula for sucessful advertising
 * Hulu as well as other video distribution sites can be viewed on Ipad
 * Are people more tolerant to advertising during online video
 * Would people pay for premium Hulu


 * Citations**

Cheng, Jacqui. (April 1, 2010). Netflix, Hulu, CBS, ABC, TED, Flickr, and more readying for IPad. Retrieved April 5, 2010 from [] Cheng is saying that IPad users will be able to stream shows from the device. Users will be able to stream through Netflix, Hulu, ABC, CBS, TED, and Flickr. Netflix has already said that users will have to subscribe in order to stream, and Hulu said they may do the same to see if it works for them or not.

Friedman, Wayne. (April 1, 2010). Online TV: More Ad Revs to mine. Retrived April 5, 2010 from [] Friedman is saying that media companies could show another couple more minutes of advertising without the majority of the viewers getting upset. One reason people are a more tolerant to the commercials when watching online is because they are viewing on their own time which could mean its when they have time to look at the advertising.

Ross, Chuck. Hulu to Charge Users in 2010. Retrieved April 5, 2010 from [] Ross is saying that there will be a switch with Hulu and they will start having premium content. However, he also said that not all will be premium. He says the media CEO’s and leaders believe their shows cannot be given away.

Stelter, Brian. (October 28,2008) Websites Formula for Sucessful Content with Fewer Ads. Retrieved April 5, 2010 from [] Stelter is saying that Hulu is doing the right thing with the way of advertising. Even though there not making enough money to fully fund a series, they are making a profit with their limited commercial ads. Hulu can do this because they can charge more for their ad slots because viewers are retaining the commercials more because there are less to remember.

Welsh, Sara. (April 2, 2010) Hulu Continues to Grow with IPad App. Retrieved April 5, 2010 from [] Welsh is saying that Hulu will be making the move to the IPad. With being apart of the IPad, they will most likely test the subscription option to see the results. This will give them an idea of what could happen if they ultimately decided to go premium for their website.