Sunday, February 08, 2009

Online video's new model | Hulu who? | The Economist

Perhaps the invisible hand is about to slap YouTube hard…

Today, even though advertising is destined for a depression, Hulu appears to have clarified much of the confusion. Mr Kilar will not say what revenue or profit Hulu is making. But it seems to be successful by any measure. Although Hulu is still far behind YouTube (see chart), users have been flocking to it, watching 216m videos in December. Just as importantly, Hulu’s inventory for advertisers appears to be sold out. So Hulu is in the rare position of being able to increase inventory (through new content and more views) and make money from it. Hulu now has more than 100 advertisers, including big brands such as McDonald’s, Bank of America and Best Buy.

Online video's new model | Hulu who? | The Economist

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