TV Execs Concerned Hulu Is Undermining Their Business Model

ABC, Fox and NBC created Hulu in order to get ahead in the web streaming game, but may have been too successful. Now that more viewers are becoming comfortable with catching their favorite shows online rather than through traditional means, Hulu may be hurting the companies’ bottom lines.

The Los Angeles Times reports Hulu’s rapid growth — it’s now drawing 27 million users a month — has caught its owners off-guard. Says an executive from Generate LA-NY, a TV and internet studio:

“Technology is changing so fast, and, as a direct result, so is consumers’ behavior. One of Hulu’s problems was that it accelerated changes in behavior faster than the companies were prepared for.”

The story says Hulu’s managers are at odds with studio execs, who believe Hulu is driving customers away from cable and satellite subscriptions, which the studios have relied upon for revenue.

In an attempt to squeeze more money out of Hulu, the studios came up with premium service Hulu Plus, which the company says is “on pace” to reach 1 million subscribers by year’s end.

What role does streaming services such as Hulu play in your entertainment routine? Have you quit cable or satellite due to free or cheaper streaming options?

Hulu is popular, but that wasn’t the goal [Los Angeles Times]
(Thanks, Brett!)