Hulu: What's Next?

Rumors here and there indicate that Hulu will launch subscription based service soon, not RSS subscription but cable subscription model. Previous rumors said Disney will be part of the joint venture, and soon we watched Ugly Betty and Grey’s Anatomy on Hulu. Personally, I think it is quite reasonable for Hulu.com to move forward to that direction as long as it is not subscription only service.

Reason One: Competitors are working.
A few months ago, we might still think Hulu is competing with other video streaming websites, such as Joost, which now is busy with its lawsuit against former President and CEO Mike Volpi. Actually, the increasing popularity of Hulu has already threatened traditional cable providers. Starting from July, ComCast announced a trial that offers its subscribers to streaming HBO and Cinemax shows through Comcast.net and Fancast .com, an effort of ComCast and Time Warner to enter video streaming business. In U.K., Sky TV has already launched a similar service for subscribers to watch TV program on PC by downloading their software. Confronting with the initiatives from cable providers, Hulu definitely does not want to get behind those competitors, ComCast already has customers but Hulu still needs some efforts to convert and educate its users. Maybe the desktop remote is a start.

Reason Two: No Television sets in the future
From consumer behavior perspective, many years ago, Nicholas Negroponte already said that the future is not about HDTV but no TV set at all after all information is digitized (Bing Digital, 1996). The prediction has not being completely proved but it is on the way. Hulu is definitely at the right spot to welcome all the viewers who turn away from television set but still need content, and would like to pay a little for that if it is user-friendly enough. Also, according to L.A. Times, HDTV sets guzzles energy and state like California is working on the energy efficiency plan to set stand for that. So, watching television on Hulu could be greener than watching it on the HDTV sets.

Yet, I hope Hulu will not go completely subscription only, which will be too cruel to its fans who just want to watch 30 Rock weekly and really does not need that much cable program. And, I saw more big advertisers, such as VISA and Macy's, so the ad-supported model is still working for both parties.