I think the expression is three strikes and you’re out. And with three execs involved with Hulu now having hinted at paid content on its way, I think it’s safe to assume this is more than just an idea of something that could happen in the future. In fact, I’d suggest it’s now guaranteed to happen.

Free Hulu

Hulu is currently the free home of premium online video content in the United States. The fact it’s only available in the U.S. is annoying for those of us outside the country but there is at least hope of an international roll-out to come.

The problem is that it doesn’t look as though Hulu will be completely free for much longer. In fact, if the people in charge have their way, which they undoubtedly will seeing as they are indeed in charge, Hulu could be charging by 2010, which is just over two months away.

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CBS is the only one of the four major U.S. television networks which doesn’t offer any content through Hulu. And doesn’t look like changing anytime soon.

The reason? Because a free Hulu is evil and is killing network television. Apparently.

Traditional TV Vs. Web TV

And there I was thinking that the TV industry was finally getting it. Thinking that it was managing to embrace the idea that there are alternative ways of consuming content than the traditional ones using the old-fashioned business models. But it would seem not.

There has been much talk recently from the people in charge of the companies which own Hulu, especially News Corps. chairman Rupert Murdoch, over the possibility of turning Hulu into a cash cow by either going all-out for a subscription-based model or at least running a paid option parallel to the free one.

And now CBS has got involved in the argument.

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Hulu has got where it is today – a very popular and widely known online video service – by being free and full of great content. The question is, would the majority of people give up the free aspect in favor of more great content? Because that’s the reality Hulu users are facing in the future.

Hulu As It Is

Hulu has been built on the tenet of providing free premium content over the Internet using an advertising based model to first cover costs and secondly generate revenue. And it’s been a pretty successful strategy, allowing Hulu to build a sizable audience.

However, the company is still expected to make a loss of around $33 million this year, despite revenue of $164 million. So naturally the thoughts of those at or near the top of the companies who own and control Hulu have turned to whether a different approach would prove to be better.

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Hulu is a brilliant service which has truly brought American television to the online masses. Part of the appeal of Hulu is the fact it’s free, with revenue coming from a purely advertising-based model. But certain parties want to change all that. Could Hulu survive the transition to a subscription-based model?

Hulu – Hot and Getting Hotter

Being British, I’m jealous of Americans for one reason and one reason alone – Hulu. Yes, we get to watch BBC programming on the iPlayer, and there are a number of other online TV catch-up services either already present or about to launch in the U.K. But Hulu offers American television at its best.

Hulu is massively popular in the States, having around 40 million viewers at the last count, who between them watched nigh on 500 million video streams. Which is surely cause for celebration amongst the partners behind the project.

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Online video is growing all the time, both in terms of popularity and frequency. Which is all good for the sector.

However, navigating the breadth of choice now out there and filtering the available content is getting harder as a result. Enter Magma, which acts like a Billboard Hot 100 for online video.

Online Video Growth

Online video has grown, and continues to grow, in popularity and breadth of content. The choice of sites, portals, content, and video clips now available is breathtaking.

There are the long-form video destinations such as Hulu and the BBC iPlayer, and short-form video factories such as YouTube and Dailymotion. Between all of them the range of content available to your average viewer is simply astonishing. It would take years to watch it all.

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Those of us outside of the U.S. have been looking on with envy at the glorious job Hulu has been doing for the last couple of years.

And then news broke that Hulu was coming to the U.K. before being rolled out elsewhere. Unfortunately, due to a lack of content partners, the waiting game continues.

Hulu Beyond The U.S.

Hulu has been an outstanding success in the United States. It has brought premium television content in catch-up form to the masses over the Internet for free. Americans have adopted the service in their droves and despite the occasional hiccup, the American Hulu is doing a fine job.

But why does it have to be limited to the States? The obvious answer is it doesn’t. While those pesky (and much talked about on Web TV Wire) international copyright restrictions prevent Hulu US from being viewable in other countries, there is no reason why there can’t be a version of Hulu built for other countries and full of local content.

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Online video is very young in the big scheme of things, which means it’s a business still finding its way in the world. Revenue is a topic only now starting to be seriously debated. Will free services with ads win out or will we eventually be charged for content?

Early Days Experimentation

Despite now being a few years old, the online video sector is still in its infancy, especially in terms of premium content provided by the traditional TV networks. But these companies face a problem – making money from the venture. They aren’t in it for any other reason than profit and where that profit comes from is a huge dilemma.

There’s a feeling at the moment that the big American television networks are really only experimenting with online video. They know there’s a demand there, one that’s growing as quickly as Broadband speeds increase, and they don’t want to miss out on being a part of what will likely take over from traditional TV one day.

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