Hulu Puts Gun To Own Head: May Require Users To Show Proof Of Pay TV Subscription
from the preserving-the-problem-to-which-they-are-the-solution dept
We've discussed in the past how Hulu's owners -- the major Hollywood/TV studios -- absolutely hate that Hulu is actually useful and convincing people to watch TV online. Because of that, they've been trying to destroy Hulu. Hulu's management -- which mostly seems to understand the internet -- tried to get out from under this potentially paralyzing ownership structure, but the studios (stupidly) telegraphed the message that they would block Hulu from getting their content, meaning that no one wanted to pay the ridiculous asking price.Well, now it appears that phase one of making Hulu absolutely useless to people who might cut the cord from pay TV is going into effect, with plans to join the networks silly "TV Everywhere" setup and require users to have a pay TV subscription in order to access parts of the service. Hulu's main (non-studio) investor, Providence Equity Partners, sold its shares last week because it heard about this plan and knew it was suicidal.
In no rational world would Hulu move in this direction on its own. Hulu's key selling point is that it's the go-to source for cord cutters, helping it build up a very large audience. Taking that crowd out of its audience makes it close to useless. While the studios love this because they make so much money from pay TV companies, it's incredibly short-sighted in the long run. It's pure protectionism of legacy revenues, done by sacrificing the one truly innovative platform they've invested in.
Meanwhile, along the same lines, the THResq story that we link to above also notes that NBC Universal will, once again, seek to marginalize its own online coverage of the Olympics, by also requiring proof of a pay TV service. Way to raise a giant middle finger to all the cord cutters out there -- guaranteeing that they seek out alternative streams for which NBC Universal gets no money.
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Filed Under: cord cutters, hollywood, pay tv, television
Companies: hulu, providence equity partners
Reader Comments
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(If I was a pirate)
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Humm
Hands down between Hulu and Netflix I watch Netflix 100 times more than I do Hulu. I would not miss the site if it went offline today.
All I have to say to Hollywood is evolve or die. And they are not at the top of the food chain either. Should walk softly in a world of predators who are much more capable than they are.
Gonna laugh my ass off when we as a nation finally prohibit special interest money in our elective political system. It is coming sooner than you think!
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As a Cable Cutter...
This will only mean less traffic to Hulu and less money to networks.
When the latest seasons of these shows are available on Netflix, I will watch them there. That is if they don't kill of Netflix before then first.
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I think that Google should bid on "broadcasting" the Olympics. They could stream all the events in real time, plus allow you to watch any event after it occurred when it's convenient for you.
Unlike broadcast TV, Google would only have to care about how many people watched, and not how many people watched at the same time.
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Does this mean I'm a pirate and I didn't even know?
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Newsflash...the market will always get what it wants. Now, if you're smart, you'll deliver to them what they want and figure out a way to profit from it. Actively denying customers what they demand is the quickest way to kill your business. What, don't tell me you believe that these cord cutters will get the cord back once they hear of Hulu's death? They won't. I won't. I won't get a cord. I don't want one. If you don't provide to me, I'll get it elsewhere. After all, its not my responsbility to make sure you get paid.
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Over time it seems the commercials have become even more intrusive from Hulu, and of course when the video stream messes up you get to watch the commercial over again. To be fair I can't say that it's Hulu's fault or the box's manufacturer.
If they go a step further and continue to limit the few shows I find interesting on Hulu then I'll just be forced to go back to the way I used to do things. Not because of the cost (I'd pay double for Hulu if I could get more shows and no commercials btw), but rather because it'll become simpler for me to go back to my RAR/PAR file setup.
If you suddenly charge 2-3-400% more for less quality expect to have no sales.
The sad part is that the ONLY part of the equation that any studios seem to get is that people want to watch their product. After that fact is recognized they then go the route of a dyslexic ferret in a badger hole. Go figgure.
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I have to wonder about this statement. DO you have any specifically clear statements from PEP that they are selling because of this plan? Or are you just making stuff up again?
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My cable bill is also $200 a month.
I will be looking for ways to decrease that bill in the future.
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Sure, I still watch a decent amount of TV shows, but the number is MUCH smaller than a few years ago and is only shrinking.
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According to the NY Post article Mike linked, so no, he's not making stuff up.
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Would never happen though, the OIC would screw it up?
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I also wonder how this is even legally feasible. Do cable companies give information about all their subscribers info to Hulu? Is it even legal if they do? I seem to remember something about information sharing by cable companies being illegal under one of the cable acts.
Well, if these studios want to put another nail in their own coffin, let them. There are plenty of other entertainment options out there.
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Insider trading?
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Really?
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Gradually Becoming Irrelevant
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Re: As a Cable Cutter...
If this keep you from watching that swill then I've changed my mind and I'm 100% for it.
Jesus, are you also giving the finger to those scallywag pharmacies that stopped selling arsenic and asbestos nose plugs...
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Re: Re: As a Cable Cutter...
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Re: Really?
How many dips are they expecting for one product?
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Re: Re: As a Cable Cutter...
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So typical - and they wonder why people go to P2P sites...
Hint: Because they actually ARE useful...
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Wait a minute?
Doesn't make any sense
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Free to err
I just put an antenna on my roof that gets over 20 HD channels, installed MythBuntu on an old PC, and dropped my cable tv completely. By scheduling recordings from the air, I'll have more than enough to watch whenever I want without paying any of them any money and they'll have to live off their advertising like in the bad old days. Oh yeah, and I can skip commercials.
Luckily for now what I'm doing is not only perfectly legal but they are mandated to provide it. Keep your eyes on the small print in those obscure bills from the back benches - we're sure to see some concerted effort to kill free-to-air broadcast.
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Re: Really?
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Re: Really?
Did you even read the post? This isn't about free vs. paid. This is about killing off a useful service that lots of people are willing to pay for UNLESS you also pay a ridiculous amount for a cable/satellite TV service you don't need.
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Re: Humm
Now be fair. They try, they really do try to die.
But the piles of still-warm decaying dead bodies from the former "music industry" (look it up in your history books) keep tripping the them up during their life-end march to their final resting places in Davy Jones' Locker.
But don't despair. In the not-too-distant future, they'll be exhibited in museums along with other ancient fossils and relics of primitive peoples' abject refusal to follow the heavily sing-posted and already constructed "yellow-brick-road" to the future.
In their primitive brains, the only choice they have the "vision" to imagine is "commit suicide or die". Their actions over the years have clearly demonstrated that.
And I couldn't give a flying fuck.
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Magic!
I mean technology!
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While they destroy themselves...
When I'm not online, I read books.
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Re: Re:
http://www.youtube.com/watch?v=6MT3CihStFQ
and
http://www.youtube.com/watch?v=Otm4RusESNU
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Lonely?
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I could care less about the newest TV Show.I am getting rid of Hollywood little by little from my life.
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I expect this cluster fuck to go away before the lawyers get through with it.
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Re: Insider trading?
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Re: As a Cable Cutter...
Only recently did I start poking around Hulu, and went ahead and added the plus plan, along with my Netflix I have had for years. (It's the end of the expansion for WoW, so I'm getting bored).
I have watched more 'broadcast TV' than I have at all in the last 5 years.
All this did was remind me how much the MAFIAA piss me off, and I will be cutting Hulu immediately.
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Make your own movies
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Re: Re: Really?
Because it was dead.
Why did the cat fall out of the tree?
Because it was stapled to the monkey
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Re: Insider trading?
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Hulu
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Re:
Are you nuts?
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Will miss it
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Re: Re: As a Cable Cutter...
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Not as ridiculous as Fox
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Geek and Sundry is simply fantastic.
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In other words, nothing from the actual people involved, just the old un-named sources.
There seems to be a lack of confirmation from either side. Hulu doesn't comment on the move (if there was any), and the investors haven't said anything either.
Speculation!
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Let's assume
All you end up with is a market for people who DON'T cut the cord to sell their account number to someone who just wants Hulu..........
muhahahahahaha
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This announcement is Hulu's suicide note
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Re:
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@Ima Fish
It would be so much more fun if they included an "Exclusive" rider on it... NBC wouldn't be allowed to broadcast it on the internet. :)
It would be an interesting test case to show if the internet really can support a commercial model (tip to those in the know: It CAN!)
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Besides, with all the cable/sat VOD services & DVRs, why would cable subscribers even care about Hulu? I'd go make a one-time only antenna purchase before I go back to cable.
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Re: Own Shows
Nah, can't happen.
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Looks like it's for free users only
To be honest, I don't mind paying the $8 per month for essentially a DVR type service like this.
If I didn't, I would buy a Digital Antennae and get the content for free, and set up my computer that's hooked up to my TV as a DVR anyway....this is just more convenient, and I'm not opposed to paying for convenience. Isn't that the point??
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Re: Make your own movies
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Re: Not as ridiculous as Fox
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Using the restraint of an investment group who wants to continue to make money as the sign that this is a great idea would be silly.
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1. alienate a good chunk of Hulus users, college students who use Hulu because they can't afford cable
2. Those users stop using Hulu, move on to other services
3. ???
4. Profit apparently?
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I don't think you understand how journalism works.
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Re: Really?
Can do. Mike is writing posts on his blog.
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Re: Re: Make your own movies
In an emergency situation while extremely sick or in a coma? I'd love to see that!
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That's $2400 a year!
That's a video projector, a stack of blurays, and a year of Netflix, with enough money left over to go outside to see live theatre, concerts, and enjoy the rest of life.
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Netflix
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