If Hulu were a dramatic figure, it would occupy a classic character role: the ingenue. The fair and unassuming ingenue naively enters a perilous circumstance with the best of intentions and soon finds that ruin awaits at every turn. The story typically plays out in one of two ways: Either the ingenue is sullied and descends to the level of the forces that surround her (think Grease), or a dashing hero enters to redeem the ingenue, removing the burdens her exposure to the world has caused (think just about everything else). These paths are both open to Hulu, and many observers are actively rooting for one or the other outcome.
There's a third, if rare, outcome: The ingenue evolves to become the hero, using guileless sincerity to overcome the evils of the world (think Pollyanna, a Hayley Mills classic). Nobody believes in Pollyannas anymore. Certainly not in the business world. But to succeed in its plans to build a paying customer base, Hulu has no other choice to but play the ingenue all the way to this third end.
Today, Forrester and Harvard Business Review Press released the print version of Empowered, a book by Forrester veterans Josh Bernoff and Ted Schadler. This book is a quick and worthwhile read for just about anyone who wants to consider the changing role of technology in the workplace. After several reads of this book, I have found that in addition to a lot of great statistics, quotes, and case studies, there is a valuable message for how companies MUST change their philosophy and approach toward new technologies in order to stay innovative.
As a quick example of how quickly the technology landscape is changing, stop for a moment to consider just how many times in the past few days you have:
Received an invitation to LinkedIn.
Seen a personal acquaintance using Facebook.
“Tweeted” or heard someone comment on “tweeting.”
Checked your mobile phone — or seen a commercial for a cool new mobile app.
It has only been a few weeks since Google announced it would create a brave, new world with its Google TV platform. In all the reactions and the commentary, I have been amazed at how little people understand what's really going on here. Let me summarize: Google TV is a bigger deal than you think. In fact, it is so big that I scrapped the blog post I drafted about it because only a full-length report (with supporting survey data) could adequately explain what Google TV has done and will do to the TV market. That report went live this week. Allow me to explain why the report was necessary.
Some have expressed surprise that Google would even care about TV in the first place. After all, Google takes nearly $7 billion dollars into its coffers each quarter from that little old search engine it sports, a run-rate of $27 billion a year. In fact, this has long been a problem Google faces -- its core business is so terribly profitable that it's hard to justify investing in its acquisitions and side projects which have zero hope of ever contributing meaningfully to the business (not unlike the problem at Microsoft where Windows 7 is Microsoft). So why would Google bother with the old TV in our living rooms?
Because TV matters in a way that nothing else does. Each year, the TV drives roughly $70 billion in advertising and an equal amount in cable and satellite fees, and another $25 billion in consumer electronics sales. Plus, viewers spend 4.5 hours a day with it -- which is, mind you, the equivalent of a full-time job in some socialist-leaning countries (I'll refrain from naming names).
Google's goal is to get into that marketplace, eventually appropriating a healthy chunk of the billions in advertising that flow to and through the TV today with such painful inefficiency.
The Hulu-will-charge-you-money rumor mill is churning once again and the blogosphere has lit up with preemptively angered Hulu viewers vowing that they will never darken Hulu’s digital door again. Some call it greed, others point to nefarious pressure from ailing broadcast and cable operations, while some decry the end of a freewheeling era. They are all wrong.
Hulu charging for content is a good thing. In fact, it’s a necessary next step to get us where we need to be. Let me explain.
This comes at an awkward time, to say the least. The site’s CEO, Jason Kilar, admitted just weeks ago that the free site is profitable, taking in more than $100 million last year and on a run-rate to more than double that this year. Blunting that momentum would be foolish. But letting it run absent the burden of helping to pay for the shows it profits from would also be irresponsible, and not in a Father-knows-best “charging for content builds character” kind of irresponsible, but in a more “not taking advantage of the opportunity to take Hulu to the next level in benefit of the consumer” kind of irresponsible.
This week the Superbowl earned with 106.5 million viewers the Number One spot of the most watched program ever in the US, which proofs that online video hasn't killed the TV star yet. (Side note: did you know that until now the 1983 M*A*S*H final held this position?).