News Corp.’s plan to make the world pay for all of its content is off to a slow start. Thus far, It’s been all talk.
Keeping in line with that strategy, Chase Carey, the COO of News Corp. said, “Hulu needs to have paid components.” He was speaking at a Bank of America Corp. conference and Bloomberg was on hand to report his quotes.
“Ad-supported only is going to be a tough place in a fractured world. You want a mix of pay and free.”
He has a point: It will be a while before Hulu’s ad revenue is meaningful to the studios that produce its shows. (They generate most of their money from cable subscriber fees and network advertising.) Charging for Web video isn’t an easy or proven model, either. But it does make sense that Hulu could charge for some premium content, such as new-release movies.
The good news: While Hulu boss Jason Kilar is figuring out how he’s eventually going to make a boatload of money, at least he keeps growing his audience. Hulu now has more viewers per month than Time Warner Cable.