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TelevisionWeek contributing writer Daisy Whitney is blogging about the pinnacles and pitfalls facing viewers who want to consume television in new ways. Check in frequently as Daisy kicks the tires on the new media juggernaut and dishes on which services do -- and don’t -- make the cut.

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Trial and Error



Views vs. Revenues: Which Would You Prefer?

July 30, 2008 10:31 AM

YouTube is kicking Hulu’s butt in views, but Hulu is going to be laughing all the way to the bank, said Milken Institute economist Kevin Klowden at this morning’s “Just How Screwed Are We?” session at NATPE's LATV Festival.

Mr. Klowden pointed out that despite YouTube’s name recognition and 4 billion views a month, it’s only selling ads on 3% of its videos. Hulu “does a much better job making money,” he said.

YouTube is expected to generate $200 million this year, while Hulu, with its 80 million monthly streams, will generate $45 million to $90 million.

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Comments (1)

Greg:

Youtube has more to lose in trying to monitize, but their untimely death will come if they don't figure out a way to evolve into something that gets users the content they want in a way that allows them to still make money.

I have had a fundamental problem with Hulu since day one and I went back to an older blog post of mine and I still believe it. I want my media portable, available online or off, I want the whole catalogue, and, darn it, I don't want to wait for it.

Let's face it, Hulu works for NBC because they don't have to share revenues with distributers like Apple. And they can hope to capture some of the revenue that's going away from TV to online, which will keep their biggest clients happy(er).

But I hate the model of locking me to my seat in front of a screen for streaming video (until somebody makes a portable wi-fi device that has a decent battery).

One more thing. If anyone at NBC/Hulu or whatever ever spent time in a checkout line, they'd notice the 100 or so items that are there to capture your impulse dollar. That's what NBC walked away from. Sure, in and of themselves they're no big deal, big given the state of the economy every dollar counts. Every dime you can squeeze out of your content will help the bottom line.

So YouTube and Hulu - make it work (for me).

Alright, I'm better now...whew.

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