CEO Jason Kilar On The State Of Hulu
by Michael Arrington on April 28, 2009

Hulu CEO Jason Kilar sits down with Sarah Lacy on Yahoo Tech Ticker. The first and second segments are now up.

In the first segment, in response to Lacy’s question about why Hulu removed its content from the popular Boxee service, he talks about his need to juggle the needs of his three customers – networks, viewers and advertisers. The networks must be kept happy to make sure Hulu is around for the long term, he says, and this move was made to keep the networks happy. Kilar also addressed rumors of NBC pulling out of the joint venture.

Kilar talks about Hulu’s business model in the second segment. He won’t disclose revenue but says the company is ahead of plan. Analysts say the company may have made as much as $65 million last year on the back of advertising that sells at much higher rates than YouTube commands.

More segments coming up.

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  • The video’s too small, how do I fullscreen it?

  • I don’t know what is the state of Hulu, I just know I see a lot of Ad Council ads there instead of real commercials. I still think they have low name recognition and their main competitors their parents companies NBC and Fox who constantly promote their websites rather than hulu.

  • Hulu is gonna get stomped on by youtube. I don’t see hulu ever archiving profitability of a sizable marketshare, and I wouldn’t be surprised if the plug were pulled on it within a year or so. http://iamned.com/blog/ need more outsourcing

    • they are different products you fool. Seriously, people like you should not be allowed to comment.

    • Except for the fact Hulu already have a ton of revenue, significant marketshare, and exclusive content.

      Both sites with survive and thrive for a long time.

    • Hulu is actually making money. Yeah, YouTube is making 4 times as much (at least by my estimates–correct me if I am wrong) but YouTube is still not profitable.

      Although I don’t expect Google to cut YouTube, Hulu is a lot more valuable because it is getting high quality content/shows.

  • Silicon Valley style company MADE IN CHINA!

  • Hulu has a lot of promise, maybe they end up just licensing their platform to other networks?

  • I for one love hulu. It has much better user experience than youtube or any other competitors. I hope and pray that they are in business for long term.

  • Hulu is one of the best video sites around. Beautiful and friendly design with good performance. I don’t see youtube taking it over with the current state of both websites.

  • Hulu has finally taken me. I’m lovin the whole feel and experience. Of course, it slows down around 5-8pm PST, and the videos are choppy, but it’s something one can get over..

  • @technotopia

    I’m confused how YouTube is going to take over the world. Where’s the content going to come from?
    Baseless statement! Hulu is the real deal and the closest the large media companies have come to figuring out the internet.

  • the content from youtube is going to come from us, whereas the content from Hulu is going to come from corps.

    Still, I believe in Hulu : )

    • And let’s talk a little about your production value compared to that found in, say, an episode of LOST?

      Hulu is nothing more than one of the first genuine efforts at moving _old network_ TV to the new network (read Internet). They happen to be getting a lot of things right, in fact. I suspect they’ll do quite well.

      There will always be a place for highly produced entertainment. And, don’t worry, you’ll get lots of high and low entertainment from the Web: YouTube’s not going anywhere because of Hulu.

  • That interview was nothing but fluff! Sarah asked several valid questions and Hulu-man simply sidestepped, equivocated, and twisted around giving any kind of answer of value at all. He might be entertaining to watch on a dancing show, but otherwise this interview was a waste of time.

  • I work with a few TV producers and I can tell you that we’re all watching Hulu with a lot of anticipation, professional content needs a home outside YouTube.

  • Could you embed the video any smaller!!! Please?!!!

  • I think Hulu is worlds better than YouTube…hopefully they find a way to stay afloat.

  • Did he say persnickety? 4 realz?

  • How about a site that shows both. That way you don’t have to go to two different sites. I found clipta.com to show youtube and hulu videos.

  • @Christopher Ross

    very well said…..

  • Hulu, CbsNews.com/Video, theWB.com, wbkids.com, joost.com, TV.com & even YouTube = my Cable TV substitutes!

    I finally have a Cable TV like service with a la carte options and best of all it’s FREE!

  • I watch a lot of content on Hulu (and NetFlix instant play).

    The second comment above about the large number of Public Service and Ad Council ads is perplexing.

    Not sure why then can’t sell their inventory.

    I am *sure* that the demo watching “30 Rock” or “Chuck” online is as desired as those watching Thursday or Monday nights.

    Also, because of the paucity of ads (relative to the broadcasts) there is much less intrusions, and much greater chance for making an impression.

    Been watching Hulu since it has started, and the situation is not that much changed.

    Something is wrong. Hope they get it corrected. (Or its a political issue, and someone in power has it in for Hulu.)

  • @ anon 11:38 PDT

    you’re pretty spot on. Senior execs at NBC proper hate Hulu and wish it was never created. Rightly or wrongly, it is perceived as cannibalizing the net’s commercial ad revenue and ratings. Unless it has a *stellar* performance, and soon, it will be killed off – despite Kilar’s valiant efforts.

    • Very sorry to hear that NBC feels threatened by Hulu. I don’t own a TV anymore, and I don’t plan to go back to watching TV content that way, so I think at least some of the horses are out of the barn already. If they want any money from me, they have to meet me online.

      I’ve also be befuddled by the weird advertising on Hulu. I watched an entire season of Stargate SG-1 in a weekend and saw the same graphic anti-smoking ad the whole way through. Ack!

    • NBC had better adjust. People are starting to leave TV. If they really pushed Hulu, it could make far more money than it is now. I would be more than willing to sit through 3 or 4 min. of advertising as it is no different for me than TV. People will get the content over the internet legally or illegally and NBC should learn how to adapt instead of living in the past.

  • Now this is a real company that is doing serious and sustainable things that we can all appreciate. I like Hulu much better than YouTube!

  • Hulu is great. YouTube is great.

    YouTube is about to become great-er and great-est as it duplicates Hulu’s purpose while maintaining its current. Don’t you folks follow the news? It’s been reported for months now that YouTube is prepping to present movies and TV shows.

    Not only will YouTube encroach upon Hulu territory, but lookout Facebook… new social network features will hatch this summer on YouTube.

    • There is a large difference between showing a TV show that aired yesterday and another that aired 15 yrs ago. I love “Married…with Children” but it is not exactly up to date.

      I also don’t need YouTube to become the Microsoft of online video. We’ve traveled that road and we don’t need to do it again.

      • Hey, str1f3,

        Sorry to break it to ya, but there’s a large difference between what “you don’t need” and what companies will to happen. Derek, below, has the proper idea. Time for you to catch up with the world of today. According to reports of what YouTube is negotiating, they will compete directly with Hulu in terms of shows that “aired yesterday”. Both will survive, but YouTube will be so much more than entertainment. Again, as Derek below has pointed out and what I intimated in my original post, YouTube is already a great resource for just about any information you can dream of. If you haven’t discovered that yet then, sadly, you’ve been stuck on the funny cat videos.

      • I do understand your fear of a monopoly brewing, but isn’t that, for the most part, already the case with YouTube in terms of user genererated video? I don’t see where the world has suffered from it. Do you? If so, explain.

        What I see and have experienced is that YouTube has shrunk the world and expanded minds. I’ve explored genres of music the world over that I might never have if not for the convenience of YouTube. I dwell often in YouTube’s educational channels, MIT Coarseware and Standford’s courses among my favorites. I have dialogued with people all over the world and now have active plans to touch base with several when I visit their countries. Hulu is great, no doubt, but, for now, it’s mainly entertainment. YouTube continues to look for ways to monetize. Hulu’s model seems to be successful. Is there a law that would forbid YouTube from duplicating Hulu’s model? Isn’t that what all competitive businesses do once one among their midst has innovated successfully?

    • Exactly!

      Exciting things to watch for:

      Youtube.com/edu
      Youtube.com/abc
      Youtube.com/ESPN

  • youtube is better than hulu youtube is very famous site. I don’t own a TV anymore, and I don’t plan to go back to watching TV content that way, so I think at least some of the horses are out of the barn already. If they want any money from me, they have to meet me online.

  • As my buddy Peter Hirshberg says; old media is always the content for new media. Books became Movies which became TV programming (in early TV years) which found distribution on the Web.

    Peter created a good TED though piece at http://www.ted....nd_the_web.html

    Web will be the on-demand that Warner and Atari dreamed of from the days of Pong.

    Now Hulu just needs to stop showing PSAs and get georelevant!

  • Check out this video. It gave me a completely different perspective on smoking. http://www.yout...h?v=9Y56eFX2D-8

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