Sullivan,+T+Strategy+Report

​Sullivan, T

TO: Proxmity video team From: Tommy Sullivan Date: Feb 22, 2010 Subject: Strategy Report HULU

This is my Hulu strategy analysis. Hulu is the leader when it comes to watching television shows on the internet. They enjoy the luxury of being in a very popular industry that fits perfect with the Gen Y viewers they serve.


 * Profile**

Hulu.com is a website that allows anyone to watch television shows and clips at any time and anywhere there is internet. Hulu does not require any subscriptions or any other form of payment from the viewer; instead it makes revenue through advertising with limited commercials during the shows .The shows are the same professional shows that anyone can watch on TV and Hulu gets the rights to them so there viewed in great quality. Hulu started in March 2007 as a joint venture with General Electric being the main owner through it's NBC Universal section of its business. However, the General Electric stock report says there is a potential deal being finalized that would make Comcast the majority owner with 51% of NBC Universal and General Electric would have 49%. (Standards & Poor's, 2010). Hulu is based in Los Angeles. They are led by their CEO Jason Kilar who brings a lot of experience with him coming from Amazon where he worked on Amazon's emergence into the video and DVD businesses.(Hulu Media Info)


 * Competitive Landscape**

The competitive landscape for Hulu right now is very favorable. It's a one of a kind site because they have two forces going for them over other sites which are it has user power meaning users have a choice of what to watch from all different networks and provider power meaning they have the ability to show the content from different providers legally.


 * Hulu's Strategy**

Hulu's strategy is to continue being the leader in online television while also figuring out how they can make more money through it with out losing their existing viewers. They plan to continue striving to make the website the leader in viewing shows on the internet by keeping their site as user friendly as possible. They make the viewing experience more enjoyable by limiting the commercials and keeping the show quality high. They only show one short commercial during each regularly scheduled commercial break. However this also benefits Hulu because this allows them to charge more because they feel that with a single commercial, the viewer retains more of what the commercial is about. (Stelter, B 2008)

However, now that they have won the battle for free streaming video, they need to decide if they want to compete in the premium market, or continue making extra money doing what they are doing now and not charging.


 * Gen Y Implications**

Hulu's concept fits great with the way Gen Y acts because they want to have access to the shows they want to watch whenever and for free. I believe Hulu will be sucessful as long as they operate under their present strategy with not charging.

However, it Hulu decides to charge for premium content it may cause a lot of Gen Y viewers to stop using it because that would eliminate one of the main reasons why people like this site so much and i don't think gen y would pay for it. (Bercovici, J 2009)

Bercovici, J. (June 3, 2009). Soon, You'll Have to Pay for Hulu. Retrieved February 28, 2010, from [] Hulu. Media Info. Retrieved February 28, 2010, from [] Standard and Poor's. (February 27, 2010). General Electric. Standard & Poor's Stock Reports. Retrieved February 28,2010, from [] Stelter, B. (October 28, 2008). Website's Formula for Sucessful Content with Fewer Ads. Retrieved February 28, 2010, from []