Monday, June 13, 2011

Hulu Tries to Mitigate Declines in Summer Viewership

This summer Hulu is exploring new ways to increase viewership over the summer months. The company has experienced the same decline in viewership that networks have historically faced in the summer and is looking for innovative ways to turn that around. As part of their strategy they have acquired 3 new shows that will be available in the U.S. exclusively via Hulu. Historically, Hulu has not held exclusive rights to content and as such they have been an alternative viewing platform. This could prove to be an interesting approach for Hulu and we will see how it plays out in the U.S. market. The question is: are they actually finding a solution to increase summer viewership with this strategy? I am skeptical that these three shows will offer something unique vs. the “counter-programming strategy” that has been used by television programmers for years with little success. I find it highly unlikely given the nature of the shows acquired that they are going to make up for the historical drops in percent viewership over the summer months. Even if the content is extremely compelling and results in a slight boost in the number of viewers this will not spill over into the other content Hulu is offering. It makes sense to think of the television industry as cyclical and while it is an interesting approach on Hulu’s part exclusive rights to these shows will not be the end of their summer woes.

http://www.latimes.com/business/la-fi-ct-hulu-20110611,0,7294936.story

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