Friday, 8 July 2011

Hulu has 875,000 paying subscribers

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"The slope of Hulu Plus’s subscriber ramp is higher than we previously forecasted. We just closed our biggest month in Hulu Plus paid subscriber net additions by a healthy margin; we added more paying subscribers in June than we did in April and May combined. [This] our month-end Hulu Plus paying subscriber numbers since we exited our private beta period in November 2010. In our first 7.5 months, we are fast approaching the 1 million paying subscriber milestone (we already have over a million when including those in a one-week free trial period). We anticipate exceeding 1 million paying subscribers before the end of this summer; previously we had forecasted crossing that threshold around the end of this year. We are extremely encouraged by the ramp of this business
We have always believed that our path towards creating a special company lay in our ability to delight our customers. The key to delighting content owners rests in the economics, and Hulu Plus is already revealing our ability to compensate content owners at the high end of the market for a given body of content. Today, we proudly and profitably pay the content community approximately $8 per subscriber per month for the content offering you see today on Hulu Plus. A portion of the $8 payment to the content community comes from our $7.99 subscription fee; the balance comes from the revenue we generate through advertising. As Hulu Plus increases in scale and scope, we believe significantly more dollars in aggregate will move to the content community than has historically been the case in the industry. These economics are made possible by our ability to thrive on low margins and the unusually effective Hulu advertising service we’ve built and will continue to innovate. A very positive trend for the content community."
Source:  Blog post by Hulu, 6th July 2011

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