Online TV service Hulu has been free and ad-supported ever since its launch, although recently it’s also introduced a paid premium tier. However, it seems the startup is facing pressure to change its model… from its co-owners. The Wall Street Journal says that News Corporation and Disney may pull some of their content from Hulu’s free service due to – stop us if you’ve heard this one before – fears that it’s cannibalising revenues elsewhere. Except this isn’t as much about free streams cannibalising digital sales: in the TV industry, the problem is more about free streams reducing the revenues from other distribution partners, such as cable networks. Concern that a ‘cord cutting’ culture is emerging where people give up on cable to get their content from the internet appears to be spooking Hulu’s owners.
Hulu facing rightsholder pressure over freemium model
