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.

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?
Money is key. It’s a shame that is the case but true nevertheless. And this adage is having a direct influence on the online video sector – from why YouTube is constantly engaged in battle with copyright holders to why Hulu no longer supports Boxee.
Until now, Hulu and TV.com have existed side by side happily, with the latter even syndicating content provided by the former. But that relationship now seems to have soured. Could Hulu now be eying TV.com up as potential competition?
2008 has now seamlessly morphed into 2009 and we’re all a year older, and maybe even a year wiser. But what happened in the world of Internet television over the past 12 months?