Hulu outlines new content, advertising plan

Michelle Clancy ©RapidTVNews | 18-04-2012

Online TV darling is planning an outlay of $500 million this year to acquire content, which is a 67% increase over 2011. It also plans to change up its ad strategy, implementing a pay-per-click pricing model that kicks in only when ads are watched all the way through.
Chief Executive Jason Kilar laid out the plans at the AdAge advertising conference this week as his company prepares to sell its upfront slate to advertisers for its original programming. has supplemented the content it gets from its Big Media partners by licencing 13 original TV shows, including the scripted comedy Battleground, Morgan Spurlock’s A Day in the Life reality series, and a travel show called Up to Speed, from fan-favorite director Richard Linklater (Dazed and Confused, Slackers).
Hulu now has 2 million subscribers, and has seen its revenue increase 60% in 2011 to $420 million, after the launch of the Hulu Plus $7.99 subscription service in late 2010. Even so, industry watchers have been concerned about the margins for Hulu (which is owned by the Walt Disney Co., Comcast, Providence Equity Partners and News Corp.) as it ramps up its content stable in an effort to compete with more traditional television alternatives as well as other over-the-top (OTT) offerings.
Kilar, however, is bullish on's future, saying that it represents the best hope in the over-the-top (OTT) world for acting as a truly premium television offering.
"If we’re really on our game, people will look back on it and will say, ‘Wow, I can’t believe TV was like that in 2007,'" he said.