There is a great quote in response to the viewing figures the web receives in comparison to TV, from Peter Chernin, president of News Corporation, Fox's corporate parent.
"So what?" Chernin says. "You can't protect old business models artificially." This is a truth the tech community knows well, but it's not what you expect to hear from a media baron like Chernin. What he and Zucker [chief of NBC Universal] have come to understand is that the media companies no longer have a choice: If they don't put their shows online, someone else will. "The best way to combat piracy is to make your content available," Zucker says. "We don't know for sure what the impact is going to be on our established businesses. But we want to make sure consumers know they don't need to steal our content. That's really what Hulu is about."
Read the whole story, it's an interesting read.
3 comments:
Really?
http://i36.tinypic.com/ibi2z4.jpg
Granted I think the title is quite misleading clearly nobody can compete with YouTube in terms of reach and video views - in fact nobody can.
But nonethless I think in terms of advertising it's certainly challenging things. Youtube is not making the money it should be because user generated content and advertising don't sit very well together, certainly not high value advertising. That type of advertising does sit well with pucka content as the type Hulu are offering. So in that sense I think it can compete with Youtube - but I guess we'll see. I imagine it will take a while before we can tell whether Hulu's business model is going to work. Thanks for commenting jason :-) Quite an interesting article here on the effect of online video watching on the cable industry. http://tinyurl.com/4fr7zu
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