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March 11, 2008

Ad Supported Hulu To Open Up This Weekend

Ad supported Hulu, which has been available to a limited number of users plans to open up to everyone this week. 

Here's what consumers will be looking for:
1. Expansive catalog
2. Good user experience (servers, interface)
3. Ads that aren't annoying

Here's what the business side will be looking for:
1. Large audience or potential to scale viewership easily
2. Product management/development: Balancing ad efficacy and low annoyance.
3. Ability to sell this audience to advertisers

The article discusses a potential problem that might arise because Hulu can't guarantee a stable library, thus affecting the stickiness of the property. 

What I'm more concerned about is their ability to stock a deep enough base of advertisers.  If you blast a user with the same ad four times during a show, I don't think the user will be too happy.  And I'm sure that will happen quite often if they haven't signed on enough advertisers. 

Hulu is experimenting with giving viewers a choice in advertising. During certain shows, viewers will be able to choose which commercial they want to watch — for example, whether they want to see an ad for Nissan’s Rogue S.U.V., Maxima sedan or Z sports car.

Link

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