Why Hulu Isn't Getting (Many) Movies

Hulu’s great if you want to watch episodes of the “The Office” or the “A-Team“. You’re supposed to be able to watch movies on the site, too, but right now there’s not much there. Warner Bros. (TWX) exec Jim Wulthrich tells AllthingsD’s Kara Swisher that won’t change anytime soon.

Why? DVD sales are just too important a revenue stream, and Hulu won’t generate enough money to justify cannibalization for a long time. Wuthrich explains:

You’ll see our TV shows there, but we don’t have our movies on there. For ad supported to work you need a lot of people to look at it. So for the most part it’s too early to have movies in that model. But TV is OK. [Hulu]’s a more elegant solution than network solutions in the past. It’s promotional, we get people into shows they might not have watched on TV, and may get them to buy DVDs.

So far, Hulu JV partners NBC Universal (GE) and 20th Century Fox (NWS) have released 85 titles on the site, including a few hits like “Sideways” and “Dude, Where’s My Car”. But most of them are novelties at best — no offence to fans of “Hercules In New York”.

 

 

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.