With Kilar Out At Hulu, The Media Companies Will Take Control

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With Jason Kilar now out at Hulu, the company’s direction may soon make an abrupt change. A change in business model would seem the most likely to occur now with Kilar out of the way. But a change in business model would also mean a potential change in mission for Hulu.

Currently, Hulu’s stated mission is to, “Help people find and enjoy the world’s premium video content when, where and how they want it.” And that’s been a true mission for Hulu under Kilar’s reign. His motto? “Customers always win,” is a saying that Kilar has been known to tell his staff. But now that he’s gone, there is a huge problem at the company — there’s no one to fight for the consumer.

Hulu is owned by various media companies, including Disney, News Corp., and Comcast and its those media companies content that you will find on the site. You will notice that there is one media company whose name isn’t on that list: CBS. And that’s why its rare to find CBS owned content on the site currently. But all of that may soon change now with a new CEO coming in to Hulu, a decision I’m sure which will be greatly influenced by the major stakeholders in the company (Disney, News Corp. and Comcast).

The new Hulu business model is likely to require that Hulu customers also be paying cable subscribers, meaning cutting the cord just got a whole lot more difficult. The new business model would require authentication from customers, similar to the way HBO GO requires authentication to use its app on your tablet.

A change like this would really suck for consumers, but would make these media and cable companies very happy because it would allow them to further slow down the rate of people who “cut the cord” to their cable TV subscription. And again, with Kilar out of the picture, I’m betting this change will now happen much more quickly than previously anticipated.

Which brings us back to Hulu’s original mission, the key to the mission is the last part, “Help people find and enjoy the world’s premium video content when, where and how they want it.” Soon it won’t be how you want it, but rather how the media companies want you to watch and enjoy their content.


— Jeff Weisbein

Jeff is the founder & CEO of BestTechie. He has over 10 years of experience working with technology and building businesses. He loves to travel and listen to music.




Comments


  1. It would be too bad if Hulu tied their content availability to a cable tv subscription. In fact, it wouldn’t make any sense to me at all. People with digital cable can pretty much write their own ticket with the media they pay for.

    Right now it is still possible to visit many network web sites directly, to view their content. I only pay for Hulu Plus so I can watch my WWE wrestling shows.


    • Yeah, it would really suck. Unfortunately, big media companies aren’t ready to move into the next phase of content distribution and so they’re using whatever measures they can to slow down the process.


  2. It’s interesting to ponder the possible effects of such a change. While this may help the interests of stakeholders like Disney and News Corp, you would think that the Comcast stakeholders would be opposed to this new model; a decent chunk of their business is cable internet service, and streaming video is one of the major reasons people pay for cable internet over, say, dsl. I could also see an influx of customers going to Netflix if this happens, so they should all be jumping for joy. Personally, I cut my cord years ago and I’m never going back until the programming significantly improves.

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