How Hulu makes money

by Carl Natale on July 17, 2010

Interesting look at the business model:

Hulu licenses video content from over 200 suppliers. It streams this material over the Net, through its servers and wrapped in its own user-interface. The streams are accompanied by ad placements, and Hulu and its partners get revenues that depend on how many views the videos get. This isn’t too far removed from how some traditional TV channels work, though obviously Hulu’s “screen” isn’t necessarily a television, and the same licensed content can be served up in a variety of ways to maximize income with little extra cost. YouTube works in almost the same style, except that it only licenses some of its official “TV-like” content, and mainly acquires clips for free as user-uploaded material.

via Repackaging TV: How Hulu Turns a Profit | Fast Company.

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