Hulu logo / Credit Photo: Hulu - Akamaihd
WHAT IS HULU? (In the
Entertainment industry.)
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WHAT IS HULU?
How does Hulu work?
Hulu is an on-demand video service that allows users
to stream popular TV shows in the U.S. Hulu is the leading premium streaming
service offering live and on-demand TV and movies, with and without
commercials, both in and outside the home. Unlike cable, there are also no
hidden fees, equipment rentals, or installation appointments associated with
having a Hulu subscription. You can watch Hulu at home or on the go via many of
your favorite streaming devices.
Launched in 2008, Hulu has grown to more than 25
million subscribers in the U.S. and is the only service that gives viewers
instant access to current shows from every major U.S. broadcast network. Hulu
is an American subscription video on demand service fully controlled and
majority owned by Walt Disney Direct-to-Consumer & International, a
division of The Walt Disney Company, with Comcast as an equity stakeholder.
The service was initially established as a joint
venture between News Corporation and NBC Universal, Providence Equity Partners,
and later Disney, serving as an aggregation of recent episodes of television
series from their respective television networks. In 2010, Hulu launched a
subscription service, initially branded as Hulu Plus, which featured full
seasons of programs from the companies and other partners, and under laid
access to new episodes. In 2017, the company launched Hulu with Live TV—an
over-the-top IPTV service featuring linear television channels. Time Warner
later held a stake in the service. As of the first quarter of 2019, Hulu had 28
million subscribers.
In March 2019, Disney acquired 21st Century Fox,
giving it a 60% majority stake in Hulu. AT&T (who now owns WarnerMedia)
sold back its roughly 10% stake the following month. Comcast, the only other
shareholder in Hulu, announced on May 14, 2019, that it had agreed to cede its
control of Hulu to Disney, and reached an agreement for Disney to purchase its
33% stake in the company as early as 2024. Hulu will be operated as a bridge brand
alongside Disney's fellow OTT ventures Disney+ and ESPN+, with Hulu positioned
as its streaming brand for general entertainment outside of Disney's
family-oriented studios and properties.
History
Key executives instrumental in the founding of Hulu include
Bruce Campbell, Peter Chernin, JB Perrette, Michael Lang, Beth Comstock and
Jason Kilar. The venture was announced in March 2006 with AOL, NBC Universal,
now Comcast, Facebook, MSN, Myspace, and Yahoo! planned as "initial
distribution partners." Jason Kilar was named Hulu CEO in late 2007.
The name Hulu was chosen in late August 2007, when
the website went live, with an announcement only and no content. It invited
users to leave their email addresses for the upcoming beta test. In October
2007, Hulu began the private beta testing by invitation, and later allowed
users to invite friends. Hulu launched for public access in the United States
on March 12, 2008. The first product to launch was the HULU Syndication
network, which was designed and developed by the NBC Universal team from New
York, on October 29, 2007, followed by the Hulu.com destinations site.
Hulu began an advertising campaign during NBC's
broadcast of Super Bowl XLIII with an initial ad starring Alec Baldwin titled
"Alec in Huluwood." The ad intended to humorously reveal "the
shocking secret behind Hulu," portraying the site as being an "evil
plot to destroy the world" by suggesting that Baldwin is really an alien
in disguise. Advertisements have since aired featuring Eliza Dushku, Seth MacFarlane,
Denis Leary, and Will Arnett.
In July 2007, Providence Equity Partners, the owner
of Newport Television, became one of the earliest "outside" investors
by purchasing a 10 percent stake in the company for US$100 million equity
investment, before the company was known as "Hulu." With its
investment came a seat on the board of directors, where Providence was said to
act as an "independent voice on the board." In April 2009, The Walt
Disney Company joined the Hulu consortium as a stakeholder, with plans to offer
content from ABC and Disney Channel.
In October 2012, Providence sold its 10 percent stake
to "Hulu's media owners" and ceased participation in the board.
Early in 2010, Hulu chief executive Jason Kilar said
the service had made a profit in two quarters and that the company could top
$100 million in revenue by summer 2010, more than its income for all of 2009.
ComScore says monthly video streams reached 903 million in January 2010, over
three times the figure for a year earlier, and second only to YouTube.
On August 16, 2010, a report revealed that Hulu was
planning an initial public offering (IPO) which could value the company at more
than $2 billion.
On June 21, 2011, The Wall Street Journal reported
that an "unsolicited offer" caused Hulu to begin "weighing
whether to sell itself." However, on October 13, 2011, Hulu and its owners
announced that they would not sell the company, as none of the bidders offered
an amount that was satisfactory to its owners.
Hulu generated $420 million in revenue in 2011, $80
million short of the company's target. The vacant CEO post was officially
filled by former Fox Networks President Mike Hopkins on October 17, 2013.
Disney ownership
In December 2017, Disney announced that they would
acquire 21st Century Fox, including its 30% stake in Hulu, in a sale completed
on March 20, 2019. The deal resulted in Disney having a controlling 60%
interest in Hulu.
On April 15, 2019, AT&T (via WarnerMedia) sold
back its 9.5% stake in Hulu for $1.43 billion. WarnerMedia plans its launch its
own competing service featuring content from its Entertainment networks.
On May 14, 2019, Comcast, the only remaining
shareholder in Hulu besides Disney, announced that it would relinquish its
control to Disney effective immediately. As a result, Hulu became a division of
Walt Disney Direct-to-Consumer & International, with Comcast effectively
becoming a silent partner. Under the agreement, Comcast's 33% stake can be sold
to Disney at fair market value as early as 2024. The fair market value will be
determined at that time, but Disney guaranteed a minimum valuation of the
entire company at $27.5 billion (valuing the stake as worth at least $5.8
billion). NBCUniversal will continue to license its content to the service
through at least 2024, but it will have the option to begin transitioning its
exclusivity deals with Hulu to non-exclusive terms beginning in 2020, and to
end other content deals beginning in 2022.
During its upfront, NBCUniversal had announced its
intent to launch its own ad-supported streaming service featuring new and
library content: NBCU CEO Steve Burke explained that these arrangements
"will generate significant cash flow for us, while giving us maximum
flexibility to program and distribute to our own direct-to-consumer platform,
as we build that business." Disney stated that its control of Hulu was the
third major component of its direct-to-consumer strategy, complimenting ESPN+
and its forthcoming Disney+ service. Disney+ will focus specifically on
family-friendly content from Disney's studios (not carrying "R-rated"
content), while Hulu would remain oriented towards "general"
entertainment. In the wake of the deal, Iger explained that direct integration
of Hulu with Disney's studios would allow it to "make the service even
more compelling and a greater value for consumers".
Partners
Following the start of its service, Hulu signed deals
with several new content providers making additional material available to
consumers. On April 30, 2009, The Walt Disney Company announced that it would
join the venture, purchasing a 27 percent stake in Hulu.
Starting August 15, 2011, viewers of content from Fox
and related networks are required to authenticate paid cable or satellite
service wherever Fox streams episodes, including on Hulu, to be able to watch
them the morning after the first airing. Non-subscribers will see those
episodes delayed a week before they are viewable.
On October 28, 2011, Hulu announced that they had
inked a five-year deal with The CW, giving the streaming site access to
next-day content from five of the six major networks. On September 18, 2013,
Hulu announced a multi-year deal with the BBC that will deliver 2,000 episodes
from 144 different titles in the first 12 months.
In 2015, Hulu began offering content from Showtime
for an additional $8.99/month, which is cheaper than Showtime's own streaming
service. On June 16, 2016, Hulu announced a deal with the Disney-ABC Television
Group for the exclusive SVOD rights to past seasons of seven Disney Channel, Disney
Junior and Disney XD series, and more than 20 Disney Channel original movies.
On September 18, 2016, all content from The CW was
removed from Hulu, as The CW's own website and apps became the exclusive
portals for streaming their shows during the current season, with Netflix
becoming the exclusive streaming provider for The CW shows post-current season.
As of January 2017, a limited amount of content from CBS's library is available
on-demand, mostly limited to shows that are no longer producing new episodes.
On January 4, 2017, it was reported that a deal was reached to bring live
broadcasts of CBS and several affiliated channels to Hulu's upcoming live
streaming service as well as to make more shows available on-demand.
In April 2018, Hulu announced a partnership with
Spotify that allows users to purchase both streaming services for a discounted
price per month.
Products
Hulu subscription service
At an industry conference held on October 21, 2009,
News Corporation Deputy Chairman Chase Carey stated that Hulu "needs to
evolve to have a meaningful subscription model as part of its business"
and that it would likely start charging for at least some content by 2010.
Carey's comment jibes with other News Corp. heads, including Rupert Murdoch who
has expressed a desire to charge for content with a number of online units.
The Hulu monthly subscription service called Hulu
Plus was launched in beta (preview) on June 29, 2010 and officially launched on
November 17, 2010. Like the free version of Hulu, the content available with a
Hulu subscription also contains advertising. However, it offers an expanded
content library including full seasons, day-after access to current season
content and more episodes of shows available through the free Hulu. A Hulu
subscription also provides a wider array of viewing choices. The free-access to
Hulu was only available on PCs and laptops, while a Hulu subscription allows
viewers to access Hulu through all Hulu-supported devices including set-top
boxes, smart TVs, gaming consoles, mobile devices and more. A little more than
a year after the launch of the Hulu subscription service, the number of paying
subscribers reached 1.5 million. In May 2016, Hulu reported it had reached 12
million subscribers. As of the end of 2017, Hulu reported it had reached 17
million subscribers.
On April 29, 2015, Hulu announced to the press that
they would do away with the "Plus" brand name to reduce confusion
between the paid and free plans.
The Wall Street Journal reported in July 2015 that
Hulu was exploring an advertising-free subscription option for around $12 to
$14 a month. This was confirmed as going forward as of September 2, 2015, with
a "No Commercials" plan priced at $11.99, $4 more than the $7.99
monthly rate for a "Limited Commercials" subscription, though a few
highlighted network series (less than 10) would retain pre-roll and post-roll
ad pods. Starting in 2019, Hulu plans to begin displaying on-screen ads when
the viewer pauses the show, although it is unclear whether this will apply to
customers on the $11.99/month No Ads plan.
On August 8, 2016, Hulu announced that it would end
the availability of its free streaming service through its own platform, making
it oriented exclusively to subscription services. In turn, the company announced
a partnership with Yahoo! to move this free content, which consists primarily
of recent episodes of ABC, Fox, and NBC series, to a new website known as
Yahoo! View.
In May 2018 Hulu introduced 5.1 surround sound for
their original content. In December 2016 Hulu began streaming content in 4K. 4K
video was quietly rolled back in 2018, with plans to reintroduce it eventually.
On January 23, 2019, Hulu announced a $2 price drop
for the basic ad-supported plan to $5.99. The $5.99 monthly plan has previously
been offered as a promotional offer since late 2017 where users that signed up
(or reactivated accounts that had previously ended their service) during the
offer period would keep the price for an entire year before paying the regular
rate.
Viewership
Viewership numbers for the site are tracked by
measurement firms such as ComScore, Nielsen ratings, and Quantcast. In
partnership with comScore, Hulu is the first digital company to receive
multi-platform measurement at an individual level that includes co-viewing for
living room devices. When factoring this in, Hulu's reach among adults aged
18–49 increases 50 percent.
However, the reliability of these metrics has been
drawn into question, partly due to widely divergent estimates. For example,
between May and June 2010, ComScore updated its scoring methodology and its
estimates for Hulu dropped from 43.5 million unique viewers to 24 million in a
single month. In a comScore digital trends report in 2010, comScore's Digital
Year in Review report found that Hulu was watched twice as much as viewers who
watched on the websites of the five major TV networks combined.
Hulu in May 2018 announced it has surpassed 20
million subscribers in the United States. The tally, which puts the company
about 36 million subscriptions behind Netflix, was disclosed at a media
presentation at the newly-named Hulu Theater at Madison Square Garden in New
York. Hulu said it has grown total engagement by more than 60%, with 78% of
viewing taking place in the living room on connected TVs.
Content partners
Hulu distributes video on its own website and
syndicates its hosting to other sites, and allows users to embed Hulu clips on
their websites. In addition to NBC, ABC and Fox programs and movies, Hulu
carries shows from networks such as A&E, Big Ten Network, Bravo, E!, Fox
Sports 2, FX, PBS, NFL Network, Oxygen, RT America, Fox Sports 1, Esquire
Network, Sundance TV, Syfy, USA Network, NBCSN, and online comedy sources such
as Onion News Network. Hulu retains between thirty and fifty percent of
advertising revenue generated by the shows it distributes.
In November 2009, Hulu also began to establish
partnerships with record labels to host music videos and concert performances
on the site, including EMI in November 2009, and Warner Music Group in December
2009.
In early March 2010, Viacom announced that it was
pulling two of the website's most popular shows, The Colbert Report and The
Daily Show, off Hulu. The programs had been airing on Hulu since late 2008. A
spokesman for Viacom noted that "in the current economic model, there is
not that much in it for us to continue at this time. If they can get to the
point where the monetization model is better, then we may go back." In
February 2011, both shows were made available for streaming on Hulu again. The
Daily Show was again removed from Hulu in March 2017 in order to push viewers
to watch the program on Viacom and Comedy Central's apps.
In April 2017, Hulu signed a first-run license deal
with Annapurna Pictures. Hulu also has output deals with IFC Films and Magnolia
Pictures.
New releases from 20th Century Fox will not
immediately be available on either Disney+ or Hulu, as Fox has an output deal
with HBO until 2022.
Hulu in May 2018 announced its first-ever license
deal with DreamWorks Animation, becoming the exclusive streaming home for
future DWA movies feature films, as well as library films. DWA had streamed
exclusively through Netflix since 2013. Films will be available on the service
in 2019, while original series will be available later in 2020.
On December 4, 2018, Hulu inked an exclusive
multi-year first-look SVOD deal with Funimation.
Original content
From January 17, 2011 to April 24, 2014, Hulu
streamed its own in-house web series The Morning After, a light-hearted
pop-culture news show. It was produced by Hulu in conjunction with Jace Hall's
HDFilms and stars Brian Kimmet and Ginger Gonzaga. Producing the show was a
first for the company, which in the past has been primarily a content
distributor.
On January 16, 2012, Hulu announced that it would be
airing its first original script based program, titled Battleground, which
premiered in February 2012. The program aired on Hulu's free web service rather
than on the subscription-based Hulu Plus. Battleground is described as a documentary-style
political drama.
Later that same month, Hulu announced it would air
The Fashion Fund, a six-part reality series, and the winner of the show would
receive $300,000 to start their career.
To continue with its original programming movement,
Hulu announced that there would be a total of seven original programs that were
planned to air on its service: Battleground, Day in the Life, and Up to Speed
were previously mentioned; and on April 19, Hulu added four more shows to its
list: Don't Quit Your Daydream, Flow, The Awesomes, and We Got Next. Some of
these programs began airing in 2012, while others premiered over the next few
years.
On May 21, 2012, Hulu announced it would be bringing
Kevin Smith to its line-up of original programming. Smith hosts a movie
discussion show titled Spoilers, which began airing in mid-2012.
In March 2016, Lionsgate Premiere and Hulu jointly
acquired distribution rights to the film, Joshy, which was later released on
August 12, 2016.
On May 4, 2016, Hulu acquired The Beatles: Eight Days
a Week, as its first documentary acquisition, as part of a planned Hulu Documentary
Films collection. The film premiered theatrically on September 15, before
debuting on the streaming service on September 17.
Networks
- A+E Networks: A&E, FYI, History, Lifetime, Military History, and Viceland
- AMC Networks: AMC, Sundance TV, WE TV, BBC America
- ANO TV-Novosti: RT America
- Azteca International Corporation: Azteca
- CBS Corp. content in Japan and the United States: CBS, CBS Sports Network, The CW (joint venture with Warner Bros.), Showtime (for $10.99/mo extra)
- Discovery Inc.: Animal Planet, Discovery Channel, Discovery en Español, Discovery Digital Networks, Destination America, Investigation Discovery, TLC, Discovery Family
- Disney: ABC, Disney Channel, Disney XD, Disney Junior, ESPN, ESPN2, ESPNews, ESPNU, Freeform, FX, FXM, FXX, National Geographic Channel
- Fox Corp.: Fox, Fox News Channel, Fox Business Network, Big Ten Network, FS1, FS2
- NBCUniversal: CNBC, MSNBC, NBC, NBCSN, Oxygen, Syfy, USA Network, Bravo, E!, Universal Kids
- PBS
- Starz Inc.: Starz
- Univision: Fusion
- Viacom: BET, Comedy Central, MTV, Nickelodeon, Nick Jr., Nicktoons, TV Land, VH1, Paramount Network, CMT, Logo TV
- WarnerMedia: Adult Swim, Cartoon Network, CNN, The CW (joint venture with CBS), HLN, TBS, TNT, HBO (for $14.99/mo extra), Cinemax (for $9.99/mo extra)
International availability
In July 2010, the Financial Times revealed that Hulu
had been working on plans for an international launch of Hulu Plus for several
months, and had identified the UK and Japan as markets where its free website
and subscription model could feasibly work. Hulu chief executive Jason Kilar
expressed his belief that the US model could be replicated elsewhere, saying
"We won't be satisfied until this is a global service." Hulu's first
expansion into an international market took place with the launch of a service
in Japan on September 1, 2011. On February 27, 2014, Nippon TV announced that
it would acquire Hulu's Japanese business. The service would maintain the Hulu
name under license, and Hulu would continue to provide its infrastructure and
support to the service as a regional licensee. Nippon TV also planned to
produce its own original content for the service.
As rights to its content are already held by other
broadcasters, U.S.-based video on demand services are not usually available in
Canada. Hulu also cited a small advertising market in Canada as reasoning. Rights
to Hulu's original series have often been picked up by domestic broadcasters;
for example, The Mindy Project was retained by its previous broadcast home,
Citytv, after its move to Hulu, The Handmaid's Tale was acquired by Bell Media
cable network Bravo (unrelated to the NBC-owned channel) and its streaming
service Crave, and The Path by Showcase.
The lack of international operations had been
considered a potential shortcoming of Hulu in comparison to competitors, such as
Amazon Video and Netflix. During an earnings call on November 8, 2018, Disney
CEO Bob Iger stated that after its purchase of 20th Century Fox, it planned to
make stronger investments into Hulu, including wider international expansion.
Sources, References & Credits: Google, Wikipedia, Wikihow, WikiBooks,
Pinterest, IMDB, Linked In, Indie Wire, Film Making Stuff, Hiive, Film Daily, New
York Film Academy, The Balance, Careers Hub, The Numbers, Film Maker, TV Guide
Magazine, Blurb, Media Match, Quora, Creative Skill Set, Chron, Investopedia,
Variety, No Film School, WGA, BBC, Daily Variety, The Film Agency, Best Sample
Resume, How Stuff Works, Studio Binder, Career Trend, Producer's Code of
Credits, Truity, Production Hub, Producers Guild of America, Film Connection, Variety,
Wolf Crow, Get In Media, Production Beast, Sony Pictures, Warner Bros, UCAS, Frankenbite,
Realty 101, Careers Hub, Screen Play Scripts, Elements of Cinema, Script
Doctor, ASCAP, Film Independent, Any Possibility, CTLsites, NYFA, Future Learn,
VOM Productions, Mad Studios, DP School, DGA, IATSE, ASC, MPAA, HFPA, MPSE,
CDG, AFI, Box Office Mojo, Rotten Tomatoes, The Numbers, Netflix, Vimeo,
Instagram, Pinterest, Metacritic, Hulu,
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Hulu logo / Credit Photo: Hulu - Akamaihd
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