June 23, 2008
In contrast to Youtube's user generated content model, Hulu's content is licensed from networks -- primarily FOX and NBC. The site allows you to watch full episodes of tv shows and entire movies.
While Hulu doesn’t have close to the number of users and videos that Youtube offers, it trumps Youtube on revenue per user and revenue per video. Hulu, unlike Youtube, which is a hosting service, has full rights to offer advertising on the videos shown on its site.
Writes Cuban: “Because Hulu can monetize 100pct of their growing traffic, they should be in a position to pay for the best content available. Not a lot of money, but even with the tiniest of guaranteed payments to producers, they will not only attract better content than Youtube, but they will also increase the cost to Youtube for the content they want most to license. Furthermore, because Hulu knows exactly what they have on the site and can sell 100pct of it, their professional sales force will be in a better position to package and sell bigger and more profitable ad solutions.”
Read his post at http://www.blogmaverick.com/2008/06/16/hulu-is-kicking-youtubes-ass
Comments | 8 Total
June 23, 2008 at 12:09pm by Tyler Adams
I'll be honest, I hadn't heard of Hulu until just now...so i'm thinking not so much. After checking it out, it looks to be much better managed and controlled than YouTube and other similar sites. I'm not sure this is a good thing. One of the things that makes YouTube great is the freedom that it allows its users. It will be interesting to see how Hulu develops though, and how other YouTube and YouTubesque sites respond if Hulu truly takes off.
June 23, 2008 at 3:28pm by Web Critic
More revenue? Maybe. More traffic? Not a chance!
Youtube represents the democratized audio/visual sharing of the masses and expressing unique ideas in the form of videos for others to see. It allows something that would not be broadcast on mainstream corporate T.V to be seen on youtube by millions. It's freedom of personal expression in the form of distributed personal video sharing that makes it popular. Youtube has been an alternative to garbage media TV shows.
Just because Hulu will make a lot of of money doesn't mean it's better than youtube. All it means is a good monetization model. Hulu was created as a result of the shifting corporate advertising scheme which was based on T.V commercials to now the online medium. The masses who will enjoy Hulu are just joe-blow T.V watchers who enjoy garbage T.V on the web - not one who enjoy sharing and watching rare videos.
June 23, 2008 at 4:33pm by Carel Two-Eagle
Does it matter which one has more traffic and total revenue? There's plenty of room for both models. Business being what it is, my expectation is that both will exist, each having its fans because each fills a niche. Which is the way it ought to be.
June 23, 2008 at 5:07pm by Gary Mason
Hulu will generate more revenue for sure, mainly because they are getting advertising dollars from all the major brands. Not to mention the fact that they have created a model where advertising is a main component, integrated into the content, allowing them to charge a lot more.
YouTube will remain more popular because let's face it... everyone likes to see rednecks accidently set themselves on fire.
June 24, 2008 at 4:35am by Organe d'H
This is preposterous, to say the least.
Hulu is US-only.
It has more "legitimate" and audience-catching content but it is also more dependent on the majors - which certainly do not want to see too see Hulu eat too much of their online audience.
Youtube is the 1st place where you look for thing. Googling something, you'll end up on Youtube, a property of Google, Inc.
Youtube will certainly decline one day. But not now, not because of Hulu.
June 26, 2008 at 8:23pm by Kare Anderson
Disagree. Won't get the viewer traction. Tivo those shows. Search YouTube for the rest
- Kare, movingfrommetowe
July 1, 2008 at 10:29pm by Patrick Wang
C'mon FC, don't skew what Mark Cuban said just to stir the pot. His words were more "monetizable traffic" not more traffic overall. I don't think there's much debate that Hulu will have more monetizable traffic than YouTube.
July 3, 2008 at 11:26am by Jim Hughes
Good points by all. The true beauty of the internet versus other media - people are able to follow and demonstate their beliefs and passion. With that said, monetizing traffic to a website is the end game - unless of course the site produced is done so as a hobby. YouTube is a "business" property of Google - thus it will be monetized either now through content and advertising or later when they sell the audience. Food for thought...traditional media is the monetization of our interests - the internet will be the monetization of our passions.