Networks grapple with Hulu ad sales [Variety]
Variety released a very interesting article about the growing battle Hulu is having to fight – not with Google TV or Netflix's streaming – but with its network executive partners from ABC, NBC, and FOX. Like everything else in the broadcast world, the debate comes down to ad sales.
Hulu began by forming partnerships with many of the main broadcast networks, becoming the first online source for the broadcasters' programming outside of the broadcasters' own web sites. As Hulu has grown, so have its opportunities for revenue growth, in particular the opportunity for ad sale revenue. Recently, broadcasters have begun to reclaim many of the ad spots on Hulu’s streaming videos. For example, according to Variety, NBC has claimed all the ad inventory on Hulu streams of “The Office” and “30 Rock.”
As soon as Hulu came on the scene, many wondered whether the broadcasters would eventually cannibalize their core business. This is particularly worrisome for broadcasters when you consider that Hulu viewers don’t show up on Nielsen, yet Nielsen still remains the major measuring stick for a broadcast station’s advertising sales.