Broadcasting & Cable reports that the fun may be over at Hulu. The website plans a switch to a subscription model in 2010. B&C interviewed News Corp. Deputy Chairman Chase Carey who said Hulu's current free model is a difficult way for them to make money.
"I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value," Carey said. "Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business."
AdVerse had a quick chat with Carey too and posed the question, when exactly does Hulu start charging then? Carey, who says he's only been to one Hulu board meeting since arriving at News Corp., suggests there is still no timeline but supposes it’s at least in 2010. Carey says that while throwing up a pay-wall around all content is not the answer, it doesn't mean there wont be fees for some specially-created content and TV previews. Windows are just around the corner. American Idol audition previews anyone? Mobile Hulu is another potential way of making money.
Is Hulu going to try to charge people while continuing to run commercials? People aren't going to pay for content they can get free elsewhere while also being bombarded with ads. A lot of people won't pay whether there are commercials or not. Those willing to pay are going to want an ad-free service. They will also want every episode available from every season. They will also want the episodes available immediately after they have aired - not some annoying eight day delay. The News Corp. and Comcast executives that think hordes of people will pay for Hulu the way exists now are deluded.
Broadcasting & Cable 
