In seperate news messages today video sites Youtube and Hulu are reported to be in talks or consider video on demand supported by advertising (Youtube) and paid content (Hulu). This would be a next step to make these sites into ‘proper’ channels competing with TV.
“The Google-owned site is believed to be in talks with major broadcasters including ITV, Channel 4 and Five to host complete programmes on YouTube. It is not clear who will sell ads around the content.”
“How to squeeze more money out of broadcast TV? Down the road, Immelt says that online sites like Hulu will need to find added revenue for the TV shows they stream to consumers. And, while Hulu executives have made only brief comments about a change in the site’s advertising-only model, Immelt seems eager to revamp Hulu to be more like his company’s cable channels and to get both subscription and ad revenues. “We have a business model there that works,” he says. “The question is how fast we can change (Hulu’s) economics.””