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	<title>Media Transparent &#187; Viacom</title>
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		<title>Hulu&#8217;s Biz Model Replicates Broadcast TV and it Works</title>
		<link>http://mediatransparent.com/2008/11/11/hulus-biz-model-replicates-internet-tv-and-it-works/</link>
		<comments>http://mediatransparent.com/2008/11/11/hulus-biz-model-replicates-internet-tv-and-it-works/#comments</comments>
		<pubDate>Wed, 12 Nov 2008 03:21:55 +0000</pubDate>
		<dc:creator>Pat Kitano</dc:creator>
				<category><![CDATA[Advertising]]></category>
		<category><![CDATA[Mass Media]]></category>
		<category><![CDATA[Television]]></category>
		<category><![CDATA[YouTube]]></category>
		<category><![CDATA[broadcasting]]></category>
		<category><![CDATA[cable TV]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Hulu]]></category>
		<category><![CDATA[online media]]></category>
		<category><![CDATA[Viacom]]></category>
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Three snippets of recent buzz about Hulu: Hulu has attracted advertisers used to the TV advertising model (Alley Insider 11/10/08) Hulu is easier to use when searching for TV and movies. YouTube is a mess (NYT 11/10/08) YouTube is playing catchup to Hulu by offering brand name content &#8211; announces MGM film distribution deal (Wired [...]]]></description>
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<p><a href="http://mediatransparent.com/wp-content/uploads/2008/11/picture-6.png"><img class="alignnone size-medium wp-image-134" title="hulu" src="http://mediatransparent.com/wp-content/uploads/2008/11/picture-6-300x155.png" alt="" width="300" height="155" /></a></p>
<p><strong><em>Three snippets of recent buzz about Hulu:</em></strong></p>
<ol>
<li><a href="http://www.alleyinsider.com/2008/11/hulu-ceo-revenues-vastly-exceeding-expectations-clip-">Hulu has attracted advertisers used to the TV advertising model</a> (Alley Insider 11/10/08)</li>
<li><a href="http://bits.blogs.nytimes.com/2008/11/10/youtube-pales-next-to-hulus-spiffy-multiplex/">Hulu is easier to use when searching for TV and movies. YouTube is a mess</a> (NYT 11/10/08)</li>
<li>YouTube is playing catchup to Hulu by offering brand name content &#8211; <a href="http://blog.wired.com/business/2008/11/youtube-adds-mg.html">announces MGM film distribution deal</a> (Wired blog 11/10/08)</li>
</ol>
<p><strong><em>Six observations about Hulu:</em></strong></p>
<ol>
<li>Hulu is a replica of TV. No user-generated surprises, all programming has been broadcast traditionally.</li>
<li>Strange to say, but Hulu&#8217;s success is based on copying the old world broadcast TV business model. This reinforces the fact that advertisers like the plain vanilla advertising model.</li>
<li>Hulu gets complete support from the media industry because it&#8217;s one of them. <a href="http://www.bizjournals.com/losangeles/stories/2008/10/27/daily11.html">YouTube / Google is still sparring with Viacom in court</a>.</li>
<li>Hulu is evolving naturally as a mass media, not a social media, model. It says a lot that the masses will go to Hulu when they are tired of the amateur quality of social media.</li>
<li>Cable companies, a natural play for developing their own Hulu-like content distribution systems, <a href="http://adage.com/mediaworks/article?article_id=132457">hesitate to break their lucrative cable subscription fee model</a>. Online media is perceived as a threat, just like newspapers thought last decade.</li>
<li>Consumers have gotten used to fighting content distribution bottlenecks. Hulu delivers what they want free.</li>
</ol>
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