Hulu CEO Responds to Critics: ‘I’m a Capitalist,’ and ‘We’re Not Giving [Hulu] Away for Free’

Oct 27, 2009  •  Post A Comment

Jason Klar, the CEO of Hulu, responded today to other Hollywood executives who have been criticizing the popular website for not having the right business model.

Klar, speaking at the closing session of the annual CTAM convention in Denver, said that “I like to say that I’m a capitalist,” and that Hulu "was doing anything but, ‘giving it away for free,’ " according to B&C. By the latter he was referring to the fact that Hulu carries ads. It does not currently charge users to view videos at the site.

The article also said that "Separately, NBC Universal TV chief Marc Graboff told reporters last week, ‘Hulu has got to bolster its economics…I do think Hulu is experimenting with different models. I know they’re looking at any number of things, like adding inventory (more advertising) or creating a subscription model with different windows.’ "

–Chuck Ross


  1. As soon as they get pricing on the site, people will disappear. They gave it away to attract people. But this is the wrong time to even suggest paying to watch TV.
    When I see those Visa/MasterCard logos go up, I’ll be going out to another place or just stop watching TV all together. They’d better consider PayPal because lots of people won’t pay for TV.
    Look how many won’t pay for cable . . .
    Give your resume a makeover
    We’re good & cheap!!

  2. Apres Ski is right. Making someone pay for Hulu is a bad idea but look at the possible insidious side of the move. Giving the service away for free to attract future customers, then charging, hoping to retain a fraction of those, since some revenue is better than none. A horrible idea but plausible in todays society of greed.
    The same thing is happening to Skype. There’s talk of charging for the service when telephone calls could have been on the verge of being completely free.

  3. I pay for cable in order to watch free, commercial TV. I pay for Netflix. I buy DVDs. If Hulu thinks I’m also going to pay them to watch TV shows from free, commercial networks on top of this, they are insane. And if they actually bothered to look at it from the consumer’s point of view for one minute, they’d see how illogical it is.
    Maybe the idea of merging the internet and TV wasn’t such a great one after all, boys. At least while you still don’t get one of the key players in the merge.

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  6. I love the expression. Everyone needs to express there own opinion and feel free to hear others. Keep it up 🙂

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