Back in March Hulu’s CEO Jason Kilar predicted that the video streaming site was on pace to make half a billion dollars in revenue in 2011. They didn’t quite make it, but according to statistics released on the Hulu blog they came very close, clocking in at $420 million in revenue last year.
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In the Monday blog, Kilar also said that Hulu grew the number of content partners to Hulu Plus and Hulu to 264 in the first quarter, up from 211 in the year-ago period, with latest additions including brands from Viacom, such as MTV and Comedy Central.
Hulu CEO Jason Kilar says that 2011 could be Hulu’s biggest year yet, with an increase in revenue of nearly 100 percent.
Fortune released its 2010 40 Under 40 rankings Thursday, and technology and media are well-represented, with Andreessen Horowitz co-founder and Netscape Communications founder Marc Andreessen occupying the top spot, followed by Facebook co-founder and CEO Mark Zuckerberg, and a third-place tie between Twitter co-founders Evan Williams and Biz Stone.
Google co-founders Sergey Brin and Larry Page tied for fifth; News Corp. chairman and CEO, Europe and Asia James Murdoch was No. 8; Univision Networks president César Conde No. 12; Aol chairman and CEO Tim Armstrong No. 18; there was a three-way tie at No. 27 between Facebook vice president of product Chris Cox, VP of engineering Mike Schroepfer, and chief technology officer Bret Taylor; foursquare co-founder and CEO Dennis Crowley was at No. 29; Slide founder Max Levchin and Vevo president and CEO Rio Caraeff tied at No. 31; Google head of location and mobile services Marissa Mayer at No. 34; Hulu CEO Jason Kilar at No. 37; and Microsoft global head of advertising Carolyn Everson at No. 39.
The 2010 40 Under 40 rankings will appear in the Nov. 1 issue of Fortune, which will be on newsstands Monday. The full list appears after the jump:
Earlier today Hulu formally announced its pay-product, Hulu Plus. You can read about the details here, but we have a few additional thoughts on the matter.
On the advertising: One somewhat surprising aspect of the service is that it will feature advertising at launch. While this was not totally unexpected, it has caught some observers off-guard. Robert Quigley at Geekosystem writes: “Advertisements seem like a major minus for Hulu Plus, especially if they take the form of unavoidable, show-interrupting commercials.” Indeed, as Quigley notes, Netflix offers a very wide selection of television library content, without the annoying ads.
Of course, the dual revenue-stream model that Hulu is promoting is nothing new. Anyone who pays for cable television or satellite radio already pays for access to content that has advertising, so it is logical that media companies would want to take that model online.
However, in order for Hulu Plus to seriously compete with Netflix, something may have to change… and that something could end up being media companies limiting Netflix’s access to library content of TV shows.
On the new platforms: This is a big one. There is now a Hulu app for the Apple iPhone, iPad and iPod Touch devices, and it will soon be available on the Xbox, Playstation 3 videogame consoles, as well as on select Blu-Ray players and TV sets. This has long been a request for Hulu users, as the site (which is based on Adobe’s Flash) is not available for viewing through the mobile browsers.
This is a great move for Hulu, and arguably the strongest reason to buy the service. It gives users a one-stop shop to watch most TV shows in HD, without the need to buy them off iTunes, or download multiple apps. It even works over 3G, so you can watch in the car, though not in HD. And of course connectivity with the Xbox, PS3 and other hardware means that users have another option if they want to cut the cord, and drop their cable subscriptions. Which brings us to…
On cutting the cord: Hulu CEO Jason Kilar told the New York Times that the service will not be a substitute for cable service:
Finally! After weeks of speculation, Hulu has finally announced its premium content offering, Hulu Plus. As expected, the service will cost $9.95, and will provide access to a deeper library of content than is currently available. It will also feature an iPhone and iPad app, and will let users watch programming on their television sets through videogame consoles like the Microsoft Xbox 360 and Sony Playstation 3. It will also be built into select Sony and Samsung television sets.
It also features full 720p high-definition video streaming (compared to 420p for regular users).
Hulu CEO Jason Kilar unveiled the service on the Hulu blog:
Hulu Plus is not a replacement for Hulu.com. Hulu Plus is a new, revolutionary ad-supported subscription product that is incremental and complementary to the existing Hulu service. For almost all of the current broadcast shows on our service, Hulu Plus offers the full season. Every single episode of the current season will be available, not just a handful of trailing episodes.
…
With Hulu Plus, we believe we’ve met that goal. For our end users, we’re offering them the most convenient way to access their favorite shows, on devices they love, in high definition, at a fair price. For our advertisers, who allow us to keep our Hulu Plus price low with the support of ad revenue, we offer one of the world’s most effective advertising platforms, with the ability to speak effectively to users across a variety of devices, anywhere they happen to be. And finally, for our content partners, we offer revenues that compensate them fairly for bearing the cost of producing the shows we love.
As rumored, the service will launch in closed beta, so users have to request an invitation to gain access to the service.
WebNewser will have more on Hulu Plus later in the day.
Hulu, the joint-venture video site owned by NBC Universal, News Corp., Disney and Providence Equity Partners has long been rumored to be developing some sort of subscription service.
All Things D’s Peter Kafka reported as much last month, though he added that when it would launch is still unclear.
Still, two new intriguing pieces of data seem to indicate that the subscription service could find its way onto the site sooner rather than later.
The first was uncovered by the Los Angeles Times‘ Joe Flint, who noted that when responding to FCC questioning about its plans to charge on the site, NBC redacted its response. And quite the lengthy response it was. Suffice it to say, if the plans were in the early stages, the responses would have been shorter and more to the point.
The second comes from the Financial Times Ken Li, who noted in a tweet earlier than Hulu CEO Jason Kilar will be headlining the American magazine Conference in October, talking about… the need for subscription models.
As Li notes, “does that mean they’ll have one?”
Hulu has always been very tight-lipped about future plans, whether it is about a possible Hulu mobile app or deals with content partners. The subscription service is no different. But with the evidence mounting, the odds are looking good that some sort of service will be ready to go as soon as this Summer, and probably Fall at the latest.
B&C’s Alex Weprin reports Hulu is launching its first ad campaign and its doing it on the biggest night on TV: the Super Bowl. Writes Weprin:
The company, headed by former Amazon executive Jason Kilar, hasn’t purchased any advertising up until now, instead relying on word of mouth and linkage online.
Hulu isn’t saying what the campaign will look like, if there will be a spokesperson or “voice” or if there will be any taglines. Rather, the company says it will “reveal the secret behind Hulu.
Hulu is a joint venture between NBCUniversal and News Corp. NBC TV is broadcasting this year’s Super Bowl.
