Online video streaming service Hulu has been communicating via Twitter (here, here, here) that they’re considering an ad-free tier of service.
Hulu currently offers free access via web browser and an $8 monthly subscription that expands access to mobile and television devices. But both levels are saddled with commercial interruption. As a subscriber, I’ve found the advertising to be a non-issue. Yet there appears significant pushback from what are perhaps prospective customers. The common argument seems to be folks shouldn’t have to both pay and be subjected to commercials. Yet, most of us are subjected to similar on a regular basis with relatively little complaint… as most pay cable and satellite television channels and programming are similarly presented. Unfortunately for Hulu, this counter argument was easier to make before Netflix unveiled their (commercial free) streaming-only package at the same price point as Hulu. And I doubt the majority of those making noise are likely to pony up at the proposed “higher price.”
At the end of the day, again as a subscriber, I’d say Hulu’s biggest problem is content chaos – different shows are selectively available on different platforms coupled with limited programming predictability. You’d think the descendent of the studio system could have done a more masterful job navigating these licensing waters.
(via GigaOm)
“The common argument seems to be folks shouldn’t have to both pay and be subjected to commercials. Yet, most of us are subjected to similar on a regular basis with relatively little complaint… as most pay cable and satellite television channels and programming are similarly presented.”
Well, of course, I pay my wireline provider and TiVo, and they don’t make me watch commercials, including when I watch the very same content that is available on Hulu…
The ads did irk me, but not as much as having some content available on my computer but not on my roku.
If the only twist to a new tier was ‘ad free’ then I don’t think you’d get much interested.
A ‘super premium’ tier with more content, no commercials, etc – now you’re talking.
One thing that continues to surprise me is the abundance of ‘classic’ content that most of these online services lack.
Pull out your list of Top 20 TV series of all time and look for them on Netflix, Hulu, etc. How many would you find?
I think the Boomers are out there for the taking with a service that steps up on this. And wouldn’t it be cheaper to acquire shows from the 50s-90s?
There was a time when paid cable TV didn’t include advertisements, and there was a bit of an outcry when cable providers started showing commercials. But now it’s the norm.
The same might be true of online video from sites like Hulu eventually, but with Netflix offering ad-free programming, it’s a tough sell.
I’m also a bit worried that Hulu will eventually start showing more ads per hour than the service currently does — assuming they can sign advertisers. Right now there are an awful lot of public service ads on Hulu.
While you can use a DVR to record/pause/skip broadcast, cable, or satellite TV ads, there’s no way to skip through Hulu ads.
I find the ads to be relatively benign. I had been downloading The Daily Show from iTunes for roughly the same amount as Hulu Plus is, so it was a no-brainer to move to Hulu and get a larger selection for the same price (plus the video quality looks better, though the extended interviews get posted to iTunes and not Hulu, so there’s a trade-off).
The issue with an ad-free tier is (almost certainly) that it will be at a higher price point than the current Hulu Plus. If it’s not, then I suspect Hulu will add in more advertising to a non-ad-free tier (and maybe make that $4.99/month?) to subsidize the ad-free tier (wouldn’t that suck?).
It still comes back to the fact that there are numerous shows that can only be watched through a browser. Sure, an HTPC solution is a workaround, but it’s just that – a workaround. If Hulu wants to take advantage of the Netflix situation, they need to get onto more devices (Apple TV, for one) and get all of the content onto the TV screen. I sense that’s not going to happen while they’re shopping themselves around, though.
“There was a time when paid cable TV didn’t include advertisements, and there was a bit of an outcry when cable providers started showing commercials. But now it’s the norm.”
I’m genuinely curious what you are referring to here, since it doesn’t ring any bells in my understanding of the history of cable TV.
I might have overstated the case… I was a kid at the time, but in the early days of cable, almost all content came from “premium” channels and lacked ads.
http://askville.amazon.com/time-paying-Cable-TV-Satelite-Dish-meant-commercial-free-programming/AnswerViewer.do?requestId=16159205
It wasn’t just HBO, Showtime, and the like, but all the TNT, USA, AMC, MTV, and other channels initially. Don’t quote me on *which* channels were ad-free, because I don’t actually remember. But basically in the early 80s, my memory is that if it wasn’t a broadcast channel that was being redistributed by your cable provider, it probably didn’t have ads.
Content caos is a real problem for the service, but I do think ad free would matter because there are people like myself who will never try Hulu Plus to begin with, as long as they’re double dipping by charging subscriptions and advertisements. So far Netflix has been making a killing without the commercials, so if Hulu wants to opt out of that, it’s their business, but if they insist on making me wait 60 minutes to see a 40 minute program, then there’s no way that I’ll ever spend a dime on them.
Hulu’s ads are one of the top complaints I hear from Hulu Plus subscribers, and I’ve never understood it. You pay for cable TV, and you get ads. You buy a magazine, you get ads. You pay to go see a movie, you get ads (used to be just trailers, but there are genuine commercials in there now). Heck, you pay to get on the Internet, and there’s ads. It’s weird to me that people would expect a paid service to not have ads.
That being said, I’ll echo several of the above commenters – don’t worry about the ads, focus on the content (goes back to the content is king mantra…). I’ve been a Hulu Plus subscriber since it was in closed beta – while I’m pretty satisfied, I’m definitely annoyed at the lack of old TV shows – Saved by the Bell, Friends, Gilligan’s Island, etc. I’ve even noticed some newer shows like Modern Family don’t have all the episodes anymore (Season 1 is gone, at least through my Xbox), and there are only 2 seasons total.
This is where Hulu really stands to beat out Netflix, IMO – if Netflix started showing ads, there would be a riot – its subscribers are used to the ad-free buffet. Hulu’s subscribers are used to seeing ads with their buffet, and typically, the ads are unintrusive and short enough to still be better than regular TV. Hulu thus has 2 revenue streams, whereas Netflix only has 1. Make the most of that and buy some freakin content.
I could tolerate the ads if the content was available but as long as Netflix is around ad-free I can’t find much of a reason to use Hulu. I’m more interested in current series than old reruns or obscure internet series that I can easily get elsewhere either on Tivo or Roku. What I really want is a single aggregator for all of the network shows only show on live tv or make you go to their network to catch a missed episode. It’s also annoying when I find a show on Itunes but can’t find it on Amazon or Netflix. One ring to rule them all!
The annoying thing about Hulu ads is you can’t fast-forward. That’s a downgrade from using a DVR. And a downgrade from other paid streaming services (Netflix, Amazon, etc.) that have no ads.
Then again, Netflix doesn’t have current season episodes, and Amazon charges you $1 to $3 per episode. So some limited advertising on current season episodes is probably fair.
At least Hulu puts a countdown timer and the ad breaks are usually 30-60 seconds. We just mute the sound.
I’m noticing the ad break length creeping up. I hope that’s not a trend.
More annoying is the Hulu “Plus and Minus” device restriction where some shows are PC-browser-only. That’s an arbitrary and stupid distinction. I know it’s the content owners’ fault, not Hulu’s. But they seriously need to fix it.
What Hulu Plus ought to provide:
* No device restrictions.
* Limited ads (if any) on current season shows, no ads on past season shows.
“It wasn’t just HBO, Showtime, and the like, but all the TNT, USA, AMC, MTV, and other channels initially. Don’t quote me on *which* channels were ad-free, because I don’t actually remember.”
I’ll venture that all of those channels began in the form that they are now, with the exception of AMC, which changed from being a subscriber “premium” channel without ads to its current format. TNT, USA, and MTV all began their cable existence with ads.
“But basically in the early 80s, my memory is that if it wasn’t a broadcast channel that was being redistributed by your cable provider, it probably didn’t have ads.”
I think your memory is just incorrect, with the exception of the channels that currently don’t carry ads, aka the subscriber “premium” channels like HBO.
A literal handful of channels have started as “premium” channels without ads and migrated to an ad format over the years. Off the top of my head, I get stuck after AMC and Bravo…
@Geoffrey, I didn’t realize iTunes had the extended Daily Show interviews. It always struck me as odd that Hulu didn’t provide them. After all, they provide all sorts of other clips.
@Chucky,
I think you’re right. Also, there is at least one channel which moved from premium to ExpandedBasic-level tiering while not accepting any third-party ads: Disney Channel. But of course, the entire channel is ultimately an advertisement for the Disney suite of services. No wonder they recognized the value of getting ExpandedBasic-level tiering versus getting $10/mo from only well-off families. Now all kids can nag to go to Disney resorts and themed cruises regardless of whether their family subs to premium channels, hehe.
I use unotelly.com to watch Hulu in Canada since it’s blocked here. google it if you don’t know what it is
It could be worse. I’m watching Craig Ferguson in Paris right now on my laptop right now on CBS.com and the whole ad experience is a giant pain in the ass. They regularly require you to interact with the ads to prove you’re watching, and they keep showing me the same two ads over and over again at every break (Valspar paint and Grey Goose if you want to know, now I hate both of them). I had to whitelist the site in Ghostery AND Ad Block Plus to get it to work.
I’m skeptical that many of the people who think Hulu shouldn’t have ads will actually pay a higher price for an ad-free service. Seems unlikely such a thing will be successful honestly.
I’ll stick in my usual rant about WiDi here. The fact that its on so few laptops because Intel restricts it to just laptops with only their chipsets and hasn’t opened it up is a significant contributing factor here. If it were broadly available from multiple laptop vendors etc (hey Apple!) these stupid distinctions between laptops and TV OTT would be fading by now. Apple has screen mirroring on the iPad over Air Play to an Apple TV. If they’d just implement the same thing on MacBooks…
Oh, and since we’re plugging VPN solution providers here I’ll put in a plug for the one I use–StrongVPN. Great support and lots of options to get around ISP blocks, country blocks, etc. If you want a package including say a UK tunnel so you can watch stuff using iPlayer and some other country you can get one. Cheaper if you pay by year. Very high speed in my experience. Course like unotelly above, it ain’t free.
MTV was initially ad free ( they did of course promo bands and tour dates and albums) and actually played music videos. It was a premium channel and us kids all knew which of our friends had it. Content is what pulled us in to that channel. When some ads started it was no big deal because the content was still good.
stage 2
Then came the slide into game shows and then reality shows and barely any music – I now barely watch it, even though it is part of extended basic cable.
Hulu+ has content and identity problems, pure and simple. it is in stage 2 of the MTV curve
“Hulu’s ads are one of the top complaints I hear from Hulu Plus subscribers, and I’ve never understood it. You pay for cable TV, and you get ads. You buy a magazine, you get ads. You pay to go see a movie, you get ads (used to be just trailers, but there are genuine commercials in there now). Heck, you pay to get on the Internet, and there’s ads. It’s weird to me that people would expect a paid service to not have ads.”
Couldn’t agree more, Ricky. I made the exact same comments/argument at a few sites when Hulu Plus first went live and people lost their minds regarding the ads. It isn’t as if they were the first, or only service, to use that model.
TiVo allows me to zap through ads at the click of a button. Hulu Plus is built to prevent “The Zap.” I’m not sure how long I’ll keep the Hulu Plus subscription before I tire of the ads. It doesn’t help that they run the same ads over and over: BORING!
The Hulu Plus interface over TiVo leaves much to be desired. Too much clicking to watch a sequence of episodes, especially if I switch back and forth between Tivo interface and Hulu Plus.
Just tried Hulu tonight. First commercial break: set of THREE commercials!
Second commercial break: first commercial, second one started, BAILED!
It reports 3 commercial breaks. Watching an episode of House isn’t worth that much crap.
And YES, the show/episode arrangement looks like something a 10 yr old put together using a photo album program that just throws everything randomly together.
How about an outline format or something that makes sense?
I would pay $7.99 in addition to my Netflix streaming to get commercial free TV Shows faster. But not to see commercials!
Hulu, you had your chance- FAIL!
I am sorry. But with the way Internet based services are is ok to get ads for free content. But if you pay a monthly fee for an Internet based service then you should not get commercials. Tv, cable and satellite are different.
I might pay $10 or $12 for the ad free service.
Well, Brother Bro has this to say: Hulu does have some good selections for those otaku out there, and it’s in better quality than megavideo or 90% of the streaming sites out there.
That being said, I DO use the free service, and see no need to upgrade it. The rest of my anime I get off of some IRC channels, and a few other sources. Primarily, I buy series that I am interested in, or have watched and enjoyed.
So, for me, Hulu is a good way of previewing a series.
For actually watching it, DVD/Blu-ray is the way to go. Or tor. Or IRC. Or Amazon.
Peace, all. I’m going to go to sleep.
The ads have never bothered me as a Hulu+ subscriber. What ticks me off is the inability to get a lot of shows away from the computer screen. I generally watch through my XBox 360 on my big screen TV. My computer is hooked up to my TV in my bedroom b/c it is older and doesn’t have HDMI capability and it can’t hook up to my big screen in the living room. I recently got a Kindle Fire (which I love) but I was disappointed when Hulu+ didn’t have all the shows for that either. Aren’t tablets technically computers?
The ads never bothered me on hulu….until I upgraded to hulu plus, started watching content on my Roku, and realized they have MANY fitness shows available. It’s fairly distracting to be in the middle of downward dog and up pops the commercial. Yoga/workouts and commercials don’t mix. :-/
I would gladly pay more for commercial-free TV from Hulu. As it is every time I watch a show there seem to be more ads, though not enough to get up and grab a drink/go to the bathroom/whatever else you do with regular TV. Add to that the power of the DVR that allows you to skip commercials and the only thing Hulu has going for it is availability on my tablet. Even there it fails with the number of web-only shows, and some networks like TNT & CBS only offering redirects to their buggy and useless web sites.
Web content needs to remember that not only is it competing with cable and satellite, but also with much easier and more efficient methods of piracy. There’s no buffering and no ads on pirated shows, they can be set up to automatically download from an RSS feed, there are no device limitations like Hulu’s pathetic compatability list for the Plus app, and no subscription fees.
I think most people would rather pay for content, if we enjoy it we have no problem compensating those who bring it to us, but gimped content for a fee vs full content for free is driving people away from paid service and damaging the content owners through their own stupidity.
Hulu, through an expansion of their networks and shows available through Plus, as well as tiered pricing that would allow those of us who would rather not have our kids see commercials more explicit than some soft porn videos to opt out of advertizing for a fee is the ultimate tool to combat piracy.
It also wouldn’t hurt to get some premium networks onboard with fees for channel access like on cable. HBO has a good service for mobiles, but not only does it require you subscribe to HBO, subscribing also requires that you have a cable/satellite package full of channels you’ll likely never watch.
Ads are terrible – after subscribing to Netflix for the past 6 months, it is getting harder and harder to watch anything on Hulu. I would gladly pay a monthly subscription rate the same or less than Netflix – as long as there were NO commercials.
Bill.
i once watch HULU when the adds were public adds and i did not like it but i could at lease take them now i never watch HULU never its just as bad as regular TV i got dish or maybe the other i can`t remember any more that lasted about a month or two the adds were vulgar distasteful trash and there is not one prime time TV show on that`s worth watching if i have to watch the adds i fell the same about HULU now so i just never go even when i can`t find it any where else i just don`t watch PBS C-SPAN and Seattle Football other wise can`t take it in fact after the two months i payed 200 dollars to end the contract i had and sent back their equipment and said thanks but no thanks i am more likely to read a lot more when i can no longer find add free tv on the internet i will never go back to watching cable tv it must be my age i can`t see why i should pay to be insulted for me the adds and for the most part the content on TV is just vulgar trash