How does Hulu’s value proposition differ from traditional broadcast and cable television?

Depending on the role played in the television industry, Hulu offers different value propositions. As a viewer, Hulu is convenient in that I can watch the last 4 episodes without commercial interruptions and far less advertising minutes in general. Hulu has also made agreements with online social networking and other websites to allow me to view content from those sites without ever having to go directly through Hulu. This agreement enables easier access for customers and more potential “hits” for Hulu. As a viewer, the Hulu site is intuitive, clutter free, and is continually updated satisfy user feedback. Furthermore, the site offers me recommendations of other shows that I might enjoy. In addition to being convenient, Hulu is also cheap. When compared to its competition, Hulu is free to viewers whereas competitors such as DVR and TIVO require additional costs and cable on-demand requires a cable subscription.

Hulu can also be valuable to other parties. As a content owner, having shows available on Hulu allows potential viewers/followers to adopt a show and demand to view the episodes. As an advertiser, Hulu enables a company to execute a more targeted, interactive, and effective advertising experience. The site allows advertisers to target viewers in different ways through one big up front ad or smaller ads throughout the episode. Depending on what option is chosen, the company can display different ads. Hulu also tracks the advertisements and options picked by viewers in order to analyze the interest level in a product that stemmed from a certain “demographic” of viewer based on the show. Viewers can also rate commercials which could provide considerable feedback to the advertisers.

One big bonus that Hulu offers is for people to migrate away from cable and watch TV solely through the Internet. It’s a great concept and very intriguing for people like me that can’t stand my cable provider or the service (or lack thereof) that it provides. Nevertheless, I personally do not see myself migrating from cable to Hulu anytime soon. One reason is that my Internet will still have to come from the cable company as FIOS and other options are not viable where I live. In addition, with Hulu I can only watch the last few episodes whereas my DVR can hold as many shows as there is open space. I’m not saying that I will never convert, but for the time being, Hulu remains a tool that I use only if my DVR does not record one of my favorite shows or I am looking to watch an episode that I have heard about through friends or in the news.