Hulu may go all pay  (Source: Hulu)
Will such a move kill the service?

Hulu has formed itself into one of the largest video streaming websites on the web. It still has a only a fraction of the traffic YouTube offers, but many consumers and users of the web know that the content on Hulu is usually of much higher quality than the content on the average YouTube video.

The major networks behind Hulu have been offering their programs on Hulu free of charge since the website launched. The recently launched Hulu Plus service gives users access to more content and the ability to stream content to game consoles, tablets, and smartphones.

The Wall Street Journal reports that Hulu is now having internal negotiations about a significant change in how it operates.

The video streaming site currently offers its content for free, but the internal negotiations are reportedly in consideration to change directions completely and transform Hulu into an IPTV cable provider. Apparently, the major backers of Hulu including NBC Universal, News Corp, and Walt Disney are at odds on the business model with some worrying that offering the programs for free online is undermining the value of the content via other sources like DVD and reruns on cable TV.

The revamp of Hulu would have the company offering shows to paying subscribers on demand when requested. The idea is that it would be along the lines of some of the program blocks that pay TV providers like cable and satellite offer. The WSJ reports that Hulu managers know change is inevitable. Hulu CEO Jason Kilar said, "When we blaze trails, which is what Hulu is about, it takes time. “That is not for the faint of heart, and we understand that."

This comes on the heels that the number of U.S. homes that pay for cable or satellite has dipped for the first time after decades of growth. Hulu's backers fear that offering the programs for free online is simply training generations of TV watchers to feel they don’t need to pay for entertainment.

"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher
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