Hulu Looks to Raise Funds for Original Programming
January 16, 2012 1:35 PM
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Hulu's first scripted show "Battleground"
The company is looking to raise money this year for original programming in order to compete with video streaming giant Netflix
Hulu is following in Netflix's footsteps with plans to raise money for
, including its first scripted show that is to premiere next month.
According to Andy Forssell, Hulu's chief content officer, the company is looking to raise money this year for original programming in order to compete with video streaming giant Netflix, which spends about $2 billion on content annually. Original programs account for about 5 percent of Netflix's content budget.
Hulu is doing pretty well for itself with 2011 revenue of $420 million and
over 1.5 million subscribers
. According to Jason Kilar, Hulu's chief executive officer, the company will spend $500 million on TV shows and movies in 2012, which is a boost from the $300 million Hulu predicted last year. Hulu plans to raise money through added subscribers (
$7.99 per month for
) by offering hit shows like "Misfits," which it acquired rights to last June.
"We have a very healthy business," said Forssell. "When you have a healthy business, capital is not a problem. There are plenty of people who want to help."
Hulu, which is owned by Walt Disney Co.'s ABC, Fox, Providence Equity Partners, and Comcast Corp.'s NBC, plans to release its first scripted show on February 14 called "Battleground," which is a mock-documentary about a third-place political candidate attempting to compete with rivals in Wisconsin.
In addition, Hulu ordered 10 new episodes of "A Day in the Life," which is a documentary series that will return in March, as well as a six-part documentary by Richard Linklater called "Up to Speed," which is due out in late 2012.
"We want to make great shows and get them out to the widest audience," said Forssell. "We considered giving earlier access to Plus users and other benefits, but right now the aim is to get them out to as many folks as possible."
Forssell mentioned that Hulu will continue adding exclusive programming through the first half of the year even if it doesn't raise money.
"We generate more buying power than most people assume," said Forssell. "We're not just a subscription model. We're not just an ad-based service. We're both."
Netflix will be launching its first original program,
just over a week before Hulu's "Battleground" releases in February. Netflix will then premiere its other original show, "House of Cards," later in 2012.
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Not paying to watch advertisements
1/17/2012 10:43:44 AM
I loved Hulu when it first came out and advertisements were few and far between. Now I can't stand to go there because it's too much like regular television with constant advertisements. I gave my TV and entertainment center away to goodwill after subscribing to Netflix. I'd rather pay to not watch ads. It got to the point where I hated to turn on a TV because I knew the first thing I'd see was some pharmaceutical commercial telling me how great it was followed by all the terrible, terrible things that could happen if you took it. "May compromise your immune system and increase your risk of cancer, cause sudden death, dementia, increase suicidal thoughts and tendencies...." Then a Viagra type commercial telling me how I'm missing out on life. No thanks. :P
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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