“Hulu hasn’t just grown since it launched 13 months ago; it’s exploded.” Hoag Levins from AdAge.com says. “It streams more online video than any other site except YouTube.” It is viewed as by many as a symbol of a bright new future for traditional television but some are wondering about the long-term strength of its business setup. It is hard to say how Hulu and other websites of its nature will be paid for. Right now Hulu is 100% advertising while YouTube is around 10% advertising. Hulu is a giant step into the realm of portable, watch-it-wherever-you-go-at any-time television. But with the cost of producing TV, what is going to happen when millions go to the internet to watch Hulu and traditional TV suddenly tanks? It is a hard thing to measure and seems that it’s only good for picking up additional profits after real air time. This shitft will move the focus of advertising and find what content viewers are really interesting. Just because a few things in the business model don’t seem to click right now, the internet is an unavoidable source for this mass kind of media and there is no telling when it will stop.
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