YouTube to Compete with Hulu
Posted by jonathan at 12:15am EST on 10/11/2008
Google’s online video property, YouTube, has announced that they will be offering full length television programs in addition to shorter video offerings to increase ad revenue.
Hulu has drawn quite a bit of attention due to it’s strong partnerships that it has already completed. But something that Hulu has had as an edge to YouTube is their full length television episodes and movies. Hulu is also not as “user-generated” centric as YouTube is, which has drawn a different kind of crowd.
YouTube’s user-generated content has been the key to its success, but it’s beginning to lose ad revenue and video views to Hulu. YouTube’s offering of longer videos was inevitable in order for YouTube to stay in the game.
I have to admit that I am a frequent user of Hulu. It’s a great resource to catch up on CSI or Prison Break when I’m eating lunch at work; even catching an older 20 minute episode of The Simpson’s or Family Guy.
The founders of YouTube had resisted so-called preroll, midroll and postroll advertising on short videos for fears that it would alienate users. (Sitting through a 15-second advertisement to watch a 45-second clip is hardly appealing.) But the video ads are now standard on the full-length video sections of network television Web sites.
A completely valid concern by YouTube founders. I, for one, certainly would not sit through a 15-second ad for a 45-second clip. But, I am more than happy to sit through even a 30-second ad when I’m watching a 20-minute or 30-minute television show on Hulu. They have their advertising pre-roll, mid-roll, and post-roll, and none of them bother me at all.
It’s good that YouTube is finally realizing the potential and necessity to do longer videos and they are creating the partnerships they need to remain a player.
Incoming search terms:
- google compete with hulu
Crayboff
Oct 12th, 2008
Finally. I love hulu, but youtube, backed by Google’s power, can out do Hulu with more videos and more varieties.
Jonathan Dingman
Oct 12th, 2008
I would certainly love to believe that, but Hulu has a competitive advantage already because they were first to the game and created a lot of key partnerships. Those partnerships may or may not have been exclusive partnerships.
If they were exclusive, Google is going to be at a huge loss because they won’t be able to make the same partnerships for the content we already love on Hulu.