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Hulu to Charge Users in 2010

Oct 22, 2009  •  Post A Comment

Chase Carey, the deputy chairman of News. Corp — which co-owns Hulu — says the popular online destination that carries TV programming, will start charging users, probably as soon as 2010, B&C reports.

Noting that “It’s time to start getting paid for broadcast content online,” Carey added that “I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value. Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business.”

Carey made his remarks at B&C’s On-Screen Summit in New York on Oct. 21. He later told B&C’s Claire Atkinson that not all content on Hulu would be behind a pay wall.

Interestingly, at the TVWeek Innovation360 Conference last week, Jeff Bewkes, chairman and CEO of Time Warner, said that Hulu would eventually go to a pay model. "That’s not an if," Bewkes said, "that’s a when."  Looks like "eventually" is coming sooner than later.

More importantly, it indicates that a number of media executives at the very top of their companies believe that TV shows on the Web cannot just be given away, especially to those users who don’t have cable or some sort of TV service for which they pay.

–Chuck Ross

167 Comments

  1. I would pay for Hulu a monthly subscription, but they would have to drop the adds, and have more complete content, like full seasons instead of a few episodes here and there. If they leave the model as is and started to charge, it will die. I can DVR all the shows that I watch on hulu for convenience. Back Catalog content to catch up with a season if it was complete would be worth it, because I would not have to buy or rent dvds. It works in favor of the broadcast networks. For example, I heard Modern Family was a good show. So I watched it on hulu, got caught up and now I watch it real time and actually tune in on Wed nights to ABC, which I never would have before.

  2. Content for FREE??? I get 28 digital channels (many of which are in HD) for free over the air. Why should I start paying for television?

  3. Since hulu offers nothing that I absolutely must see, there’s no reason to pay. I check in about once a month to watch an SNL skit and maybe the Daily Show, but that’s it. They better seriously add to their content if they expect people to pay. I predict the hulu pay model will FAIL.

  4. Why would they start to charge a fee now when the economy is so bad. Watching hulu is not a necessity, and peple are not going to pay for it when they have more needs to be met. I watch while at work, during lunch but if i had to pay, then i can read a book or do something else. I thinkthe timing is wrong, why should we pay becuz you are bad decisons makers..

  5. I think certain content should be payed for on Hulu, but not all of it. If they are going to still have Advertisements mixed in the content then it will not be worth anything to me to pay for it. If they go to a payed model for everything no advertisements should be mixed in with the shows. But I think if they had live streaming of cable channels online I would pay for that only if it was a low cost, that is the reason I don’t have cable it is to costly and I only watch like 5 channels out of 200 so I only have digital over the air and internet to watch my favorite programs. Most on Netflix for which I already pay for. 🙂

  6. The owners of HULU are just like CRACK DEALERS. They give you a sample, let you get hooked, then wanna MAKE YOU PAY for it once you’re hooked.
    Hulu will DIE. They’re not PAYING ACTORS residuals, so WHY CHARGE ?
    That’s what the strikes were all about in Hollywood wasn’t it?
    FREE TV on internet – NOW PRODUCERS WANT TO CHARGE?
    AFTER THE CONTRACTS HAVE BEEN SIGNED ???

  7. I have cable. I use hulu out of convenience and because it is free. What makes hulu so attractive is that it is free and ad supported. Put more add on but don’t charge. I pay for the same program already via my cable bill, why should I pay again?

  8. Hulu is already dying. Many networks have pulled their programs and now just offer them on their own network sites.
    I would never pay for what I can get for free.
    Goodbye Hulu

  9. What Mr. Carey fails to mention is that broadcast content on broadcast is not paid for by distributors. The major broadcast nets are all must carry and ad supported. He’s trying to change that and get subscription dollars for broadcast content online and on air. This is why broadcast media companies bought cable networks. Two revenue streams.
    Hulu will have to differentiate on content, features and price to win in a subscription model battle against current pay TV operators.

  10. Really? Charge for a service with commercials and buffering issues and sometimes poor resolution? And only have 1 or 2 episodes available at a time? FAIL FAIL FAIL…on ALL accounts.
    People will opt to surf U-tube or I don’t know, use a DVR or watch a DVD instead of pay for Hulu. In an economy where many are getting laid off or can’t find work and those who have jobs are losing benefits and getting pay cuts…decided to change something that’s been free to something we pay for? Well that’s just crazy. No one is going to do that. Sorry.
    If you jackasses who run Hulu wanna make more money, how about design the site with more marketing offers and get people to advertise on there like TV does? Basic TV is free…you can’t compete with that if you charge money. If someone wants to see a show bad enough, they’ll rent a season from Netflix or Blockbuster. Simple as that.

  11. Now watch as the massive wave of torrents rise.
    These guys are never gonna learn. Might as well take what you want and leave them to what they do.

  12. Oh well, back to the torrents. When will the TV execs ever get it? At least with hulu, they were getting ad revenue.

  13. Hmm Hulu Pay better not have any ads, you should be able to save episodes offline and be able to put it on a device temporarily like when you ‘rent’ a movie from iTunes, premium channels like HBO, features to ‘build a TV channel,’ start providing LIVE content (with streamed social networking content while you are watching a LIVE program) and it shouldn’t cost more than $20 a month.
    And (Hulu) hurry up and get an iPhone pay app while you are at it.

  14. Now what the hell am I supposed to do in my free time? Read? I don’t think so.

  15. fancast.com here we come

  16. This is ridiculous.

  17. Jessica Maupin is a sexy beast.

  18. They are shooting themselves in the foot. There are many ways to watch TV for free online. I just like the easy interface on Hulu. Guess some January 1st 2010, I’ll no longer be using them.

  19. Geez. Hulu just threw it’s appeal out the window.

  20. If they are going to charge, let’s be sure that they open it up to international television fans who would love to be able to watch without the rude IP geoblocking which keeps them out now. This could be a nice source of revenue, but of course they also need to expand the offerings, especially in the classic TV area. If Hulu could become the place where fans could, for a fee, access almost any series desired, then they’ve got a winner. Otherwise, there are other ways to see the newer shows, for free.

  21. I get my internet via my cable, so I am already paying twice when I watch something on Hulu. Charging a fee on top of my Comcast bill is ridiculous. And jsut when I was starting to think that Hulu was the best thing since buttered bread…

  22. Pay for Hulu, really? These people running these sites have no idea what we as consumers want. I watch hulu for episodes of some shows i missed. For the rest i use netflix for DVDs and streaming … and besides, there is always the best free streaming site out there.. NinjaVideo.net Divx full screem streaming over my 32″ HDTV for FREE !!! If hulu ask for my money i’d go Ninja full time.

  23. They better not have commercials then!

  24. Free? I was under the impression that they were getting paid by the product companies for the advertisements users are forced to watch. They’re not giving anything away for free. If anything, they should charge the product companies more per spot and keep from charging the consumers. Any other model will die.

  25. The people running Hulu don’t seem to realize that the masses aren’t exactly rushing to use their service to begin with and making them pay for the current selection is a horrible business move. Right now, they have a tenuous advantage over most network sites that offer episodes by providing older shows and most on-air shows in the same place, but region locking the site to the US, the relatively low quality video the site provides, the limited amount of actual episodes of shows, and the lack of work on fixing the site’s connection problems are gonna sink Hulu if it starts charging next year.
    That said, I wouldn’t mind paying a low monthly subscription (no more than $5, including processing fees) if Hulu got higher res episodes, ditched the ads, let viewers have complete seasons of every show in their line up, put new episodes up as soon as they finish airing, and allowed people to watch it outside the US. If they could do that, then Hulu could truly start competing with the cable companies and get tons of money, as long as they at that low price point, which will encourage more people to get the service.
    However, I wouldn’t get rid of free Hulu, mostly because there might be some people who can’t get the paid service, due to low income, poor internet connection, and what not. Giving the free site modest improvements in connection integrity and the quality of the video could help influence free users to get the full blown subscription package when they get enough money or a decent internet service.

  26. BULLLL SSSHHHHiiii you get the point why would we pay for basic cable half of the shows you can just get over the air it’s just nice that hulu put that stuff up so it was easier to catch…. so yeah no way I’ll pay for it there are plenty of other options to watch free TV online.

  27. I just started watching the shows of some of the bigger networks on Hulu (we dont have a TV). House, Flash Forward, Fringe, etc.. Once they start charging though, I’ll go back to not watching. It’ll free up more time for me to live the rest of my life.

  28. While I understand the rationale, that’s a risky move now that users have been ‘trained’ based off an unpaid UE model. Anticipate a disruption of the current ad model…

  29. Ok, I’ll just use another website…

  30. And thus, with the primary reason for it’s popularity eviscerated, hulu.com began it’s slow sink into oblivion.
    The End.

  31. get people interested in shows because they are free and convenient and then take it away from them, sounds like they want to increase piracy

  32. I get why people are so angry about this, but I do think there’s another side to this – perhaps a light at the end of this dark tunnel that involves a move away from cable dominance. You can read more here:
    http://tinyurl.com/yj2kztv

  33. Thanks, Hulu, for creating time for me to go outside! Now I can learn what a shadow is… and get a full night’s sleep. You have opened my eyes to the world around me by making me choose between my money and squinting at a low resolution poorly buffered episode of Hell’s Kitchen. Wow, looks like my money wins because I am greedy and your service is not spectacular.

  34. Will the networks then charge users to watch the same material on their own sites?
    I think the problem is the providers don’t “appreciate the value” of their content. New programming is exceptionally low in entertainment quality these days, and on Hulu, it is by no means FREE. Advertising still exists at the commercial breaks that can’t be skipped over, and the use of only one ad means most people will be sitting through it rather than making a bathroom/kitchen break. From where should the revenue be pouring in? From the advertisers who are almost guaranteed a willing, captive audience for their commercials.

  35. Ridiculous! They better be extremely cheap ($10/year?), or I will not be paying. If they get anywhere near $10/month, I’d rather get Netflix, or just pick up old shows on DVD from the local library.

  36. They want to charge me for what I can get for free anyways? No, I don’t think so. I can program a DVR just the same. I’m sure once this happens, downloading will become even bigger.
    Not to mention they don’t even give me full episodes of certain shows I like. Anyone else disappointed with their SNL showing? How about going back to a series only to find a key part in the series to just not be there? Forget the ads. Fix the content.

  37. The only thing that makes hulu worth watching is that it is free. Currently the resolution is low, subject to tearing due to a lack of frame sync, it requires a considerable amount of processing power, and the audio is limited to stereo. As someone else pointed out you can get quite a few digital channels for free these days using an antenna, many of which are HD, surround sound, etc.
    At least when Napster shot itself in the foot and became dead to most people….they had the law forcing them into it. It sounds as if hulu is going to take it’s dive willingly out of greed. They seem to forget that not only are there alternatives to hulu, but there is also the P2P scene (torrents, etc). People will migrate to whatever offers the best quality programming for the lowest cost/risk. You can download full seasons of shows and movies online in 720p and higher resolutions, and sometimes with digital surround sound….for nothing. Oh and did I mention that torrents don’t feature ads.
    I really thought that hulu was taking things in a new direction, but sounds like it’s all been a longterm scheme. Advertisers should pay for content, not viewers. I’ll be damned if I’m going to pay for broadband internet, pay for hulu, and continue to watch commercials that are blasting away at double the volume level of the actual program. You can also expect that hulu will begin to self promote like crazy as they use free content as a lure to sell their subscription content. I’d rather invest in an antenna, cable/sat service, or just break the law and download excellent quality video with P2P.
    This is a shame because I just bought a HD TV and connected it to my PC assuming that hulu was going to change the way the world watches TV. Unfortunately it was too good to be true and they are just as greedy as the next guy at about half the quality. When Napster started charging, there was no shortage of alternatives that rose from their ashes. I expect that hulu’s move to charge fees will only result in a large number of people migrating to better alternatives.

  38. I just slipped the cable guy 50 bucks

  39. Hulu
    2007-2010
    Hasta la vista.

  40. That was fun, while it lasted. Although if they don’t improve their line-up, Hulu will be a dinosaur when they go under, as they will.
    Paying for content that is only marginally better than nothing is not a good idea, especially when a lot of people are dumping their Dish TV, and other privately owned cable because they can’t afford it!
    What part of stupid did they miss?

  41. LOL so what? they gonna try to compete with netflix now? LMAO good luck, free model is the only model, either keep it, or shut yer doors.

  42. I see a few issues first of all there is no easy way to get it on your tv unlike Netflix which has quite a few devices that do that. Second they need to fill out the archive which means content can’t expire. Then there’s the video quality, they need to bump up the frame rate because it seems like in the past year it’s gotten worse. Finally if they charge more than $9.99 it’s doomed. Hulu is my backup DVR so if they want me to pay it has to become much more. That’s my two cents.

  43. i use hulu to catch up on my animes that i missed or to refresh myself on the story board of a anime im currently watchin so HULU DO NOT START CHARGING A SINGL DIME IF YOU DO I WILL LEAVE AND FIND A DIFFERENT SITE.

  44. Hulu alternative: Check out your public library for TV on DVD. Depending on your library’s size/budget, you might be surprised by the selection. If they don’t have it, ask for it. They might even inter-library loan stuff they don’t own for free too.

  45. Hulu will gain some paid subscribers, but will now lose out. People will realize that they can buy the DVD sets for less than a year’s subscription to Hulu to watch their favorite shows…unless it is like a dollar a month.
    Most networks still host full shows on their website.
    The cultural shift to watch TV via the web is still two years away. Most people are not ready to cease cable TV payments to watch all their shows on the web and pay for that service. Especially in our economic climate.
    Why pay for web content, there will always be free options to find, even if it is backdoor, which I don’t condone.
    It is a magazine based mentality of using now outdated revenue models. Of course I do understand adding value and getting more money, when limited web commercials only pay so much. Keep at the ad models and I hope something lucrative evolves.

  46. Yet another dot.com company heading for failure. It’s classic – they probably got VC funding with a flimsy business plan, built some revenue with ads, and now that there is some brand equity around the name “Hulu”, the VCs are probably trying to drive additional revenue so they can cash out.
    Of course, they have no regard for the market realities, which is to say, they are oblivious to the fact that 99% of the people that use Hulu would care less if it disappeared tomorrow. The only value to paying for a subscription would be if you were able to discontinue paying for your cable TV service. The networks will never let that happen.

  47. Well, the consesus is in…if Hulu starts charging, everyone is leaving the building – last person out, remember to turn off the light!

  48. Wow, you must be kidding me. This model is going to fall flat on its face.
    Greedy corporate bastards.

  49. I would never pay for hulu. I will never subscribe to hulu. I like to watch all the old programs and movies but I can’t afford one more subscription to something. I pay for cable and the enternet and cell phone and blah blah. I don’t need one more thing to take my money.

  50. PAY? FOR HULU? HECK NO!

  51. Goodbye Hulu
    I will NOT pay for Hulu, just like I will not pay to watch content on networks direct websites, nor will I pay outside of my ISP to surf the internet. Oh and I won’t pay to listen to the radio either. These are things that we have for a reason, having the gawl to try and make us pay for them? Guess what? We’ll find a way around it.

  52. Advertising models worked in the past and can continue to work. Just because cable/satellite provided additional revenue to media creators, doesn’t mean that revenue has to be replaced when cable/satellite are supplanted by internet distribution. The media creators have become addicted to the higher profits, but that model is dying – face it.
    1) accept lower profits
    2) charge more for advertising – the viewers are there.
    If a no-go in the worst case: an a-la-carte fee model would be much more palatable than subsciptions. Just like renting movies. Video by video (time/show) or channel by channel, but not bundles like cable/satellite that are universally despised.

  53. I would pay for Hulu if the video played smoothly, like Netflix watch instantly. It would have to handle video playback more smoothly, and it would *have* to be commercial free. You can’t keep minimal advertising and expect the viewer to make up the difference when it’s Hulu who is over-charging distributors. I’m not going to continue to pay my satellite subscription plus a separate Internet subscription for ad based content. I’m paying for content twice (three times if I buy the DVD or download it) just because ad revenue isn’t giving a wide enough profit margin for everyone to get a slice. If you really want me to pay for it two or three times over, you can have the actors come to my house and act it out in person, so I’m getting my money’s worth.

  54. Hulu is going to die when this happens.Im not going to pay for something i can watch in youtube or other sites.

  55. The whole appeal was that it’s “free” I watch adds and they give me content. I WILL NOT PAY FOR HULU EVER. If they decide to go through with this they will fail epically. I’ll also never pay for media that has DRM. Made that mistake now I have to sign into itunes every time i want to use it. Never again. And what happened hulu abandoned its HD service.

  56. Hulu, I love for your basic principle of freeness. You already have adds in the programs like FREE TV and that is the limit. No double dipping! I already watch your ads in-program, I will NEVER pay for programing I already pay every month in my cable bill.
    Sorry to hears this news, but if it happens, my family is gone. BTW, how can you do this when so many people are unemployed. Did you hire some stupid 20 something to run your company? Wouldn’t be the first time. Grow a brain.

  57. I think this is a very bad idea, and they should come up with a way to keep it free and increase revenue. More advertising or another method.

  58. Hulu is a joint venture of ABC, NBC, and Fox. Pulling content……what are you talking about.

  59. My brother-in-law complained about Hulu and didn’t have a DVR, so I built him a Mythbuntu box out of a minitower we wanted to get rid of. This sounds like great news for Mythbuntu.

  60. I am with you. Why Pay for free TV and cable? I will no longer be a subscriber to HULU. Thus you will lose me as a watcher of your ads, programs, or buyer of the products. It was nice to catch up on programs that I had missed. I did not mind the ads or even the poor sound and visuals. This hurts me only as an American watching the GREED devour our country, however on the good side I can watch your die from your decision to charge for HULU Maybe the Board ought to put a historian on the the payroll to remind these executives that the American people will not be conned and while we sit and cheer as HULU dies, others will step up to the plate and give the American people what they want and deserve and succeed.

  61. Well – I rather for Hulu not to charge per show. Reasonable charge for the entire choices on Hulu; however, I am disappointed that some shows do not have subtitles for the deaf/hard of hearing. I am a deaf customer who enjoys this website because I do not have cable where I am staying. Even some recent new shows do not have subtitle between shows. That disappoints me.

  62. I’m personally hoping that hulu decides to, instead of forcing it one way or the other, offer the option of free with ads, or with a subscription with no ads. It’s a model that has worked with many sites, and you can’t tell me selling ads on hulu doesn’t make a decent chunk of change for the ads on hulu. Technology is getting cheaper, and viewers are likely increasing.

    I can see possibly hiding the free old movies from non-subscription paying people. Maybe offer three different types of subscriptions; one for ad-free content, one for old movies, and one combining both previous types for a slightly lower price than buying each individually.

    Hulu would be a fool to try to make us both pay for a subscription AND force us to watch ads. They aren’t stupid, they know it’s true. It’s that life-long lesson of not being able to successfully have your cake and eat it too.

  63. Ok, so….
    I have an HTPC that skips the ads automatically on ATSC/NTSC/Soon CableCard recorded tv.
    Hulu has forced me to watch commercials, no problem.
    If they start charging, I’ll just get a bigger hard drive to archive my recorded tv and never watch commercials.
    It’s not like I HAVE to watch “The Office” or “30 Rock” on Hulu, I just do.
    Whatever Hulu.. There are ways around everything. I guess I’ll stay a paying subscriber to cable and record everything and NEVER watch an advertisment.
    ATSC content that I watch mostly is completely free. So it’s not even the money that I’ll be spending on cable.
    Speaking of which, a lot of people SHOULD start doing this..
    Not my sites but you can use these to skip commercials in Media Center or Sage.
    http://www.babgvant.com
    http://www.dragonglobal.biz
    This guy tanked AOL, soon he’ll tank Hulu!

  64. Hey guys we need a digg bomb on this:
    http://www.petitionspot.com/petitions/hulu/

  65. Hulu may start charging money in 2010 but I’m pretty sure bit torrents are still going to be free… Plus any of the shows that I do watch on Hulu, like The Office for example, I can also watch on the network’s own website, like NBC in this case. Lastly, competing services such as YouTube Shows offers similar service–no news of them going paid. The real news in 2010 may be “Hulu lost all viewers”

  66. Hulu, listen up, I have your solution. Everyone has been trying to get Hulu on their tv. By boxee or apple tv or any other way they can. And you’ve blocked them. Here’s why you blocked them: You’re going to make a $200 dollar hulu box. With Wi-fi and HDMI and make it slim, so I can tuck it behind my flatscreen tv mount. There’s some additional revenue right there. You can charge more to advertisers, because it’s not internet pre-roll you’re selling, it’s actual TV commercials which are worth 10x as much. The box will become the must have device for Christmas 2010. Don’t forget Amazon, Netflix, and Slingbox like capability, which you can also skim a little off the top. Also think about: Skype video calls on your tv, an HBO subcription, Storage for music and pictures, an Optical Out for surround sound. You can single-handedly kill comcast and verizon. Someone will do it eventually – apple just may beat you to it.

  67. Just say it, the corporates are getting greedy again. If people have to pay and put up with the same way it’s run, they’ll leave. There are so many other open source ways to watch TV online, it’s just that Hulu made it nicer and easier to watch.
    IF you wanted to charge money, you’d have to get rid of all ads, have FULL seasons up the whole time, and have the shows immediately available, no 8-day delays, with the possibility to download the shows. And yes, an iPod/iPhone app would greatly be in your favor.
    But since I doubt the powers that be actually listen to the people, your “great idea” will probably kill Hulu and all the fans of it will leave.

  68. If hulu starts charging people anyone with half a brain will just go to another site. There’s lots of free ones to use.

  69. It’s Comcasts fault as usual they bought out Hulu and they always are looking for another way to make people pay for everything.

  70. I’d pay a monthly fee for Hulu if they had HD 720p and 1080p content.

  71. If or when Hulu began to charge to watch tv shows & movies, i’ll go to Ninjavideo.net. Their TV hows are up to date and have all the seasons episodes and Movies as well that all play in HD quality for free,Hulu can not ans still haven’t done so this day,
    Hulu is just ike Cable tv, they advertise a small monthly fee to join than six months later they jack up the prices. So if any body wabt to watch tv for free go to ninjivideo.net you won’t be disappointed.

  72. If or when Hulu began to charge to watch tv shows & movies, i’ll go to Ninjavideo.net. Their TV Shows are up to date and have all the seasons episodes and Movies as well thet all play in HD quality for fre…Hulu can not ang still haven’t done so this day,
    Hulu is just like Cable tv, they advertise a small monthly fee to join than six months later they jack up the prices then you have to make a choice to keep expensive Cable Tv or cancel it by saving money and watching all of your TV Shows online for free. So if any body wabt to watch tv for free go to ninjivideo.net you won’t be disappointed.

  73. Pay to watch TV???? Who watches TV anymore anyway. I get all of my information/news on line. Start charging to watch TV, and my sets (which I now use for DVD viewing) will go right out the window!!!! Right along with hard copies of newspapers!!!!

  74. #1 – More full content. Not just a few episodes. I missed a couple weeks of Hero, and guess what? Could only watch the last one. Have FULL seasons.
    #2 – Improve video smoothness. If that means going HTML5 or setting things up for Hulu Desktop, so be it.
    #3 – Varying rates (hypothetical):
    a) FREE – One show per day/3-a-week via signup + various hardly-ever-viewed freebies (keeps people visiting but teased)
    b) Subscription: With Ads – $5.99/mo
    c) Subscription: Without Ads – $10.99/mo
    d) +$1.99/mo for regular selection of movies or +5.99/mo for wider, richer selection of movies

  75. I’m thinking about buying an ipad, or the HP Slate, when it comes out; this on top of having Comcast as my internet and TV provider. There is NO WAY, and i repeat NO WAY I would pay for Hulu. But I will say this. If Hulu does decide to start to start charging for it’s services, I won’t buy an ipad. I hope that Apple is listening. Also, Comcast wants to charge more if you use sites like YouTube or Hulu? Crazy!

  76. But they have sponsors, so why do they need to charge. I’d rather listen to the short ads.

  77. But they have sponsors, so why do they need to charge. I’d rather listen to the short ads.

  78. Why would you want to pay and still have the ads??

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