
Hulu, an NBC affiliated company, recently pulled its distribution feed from competitors Boxee and TV.com (CBS-owned). These sites were in agreement with Hulu for the right to stream Hulu content on their sites. Hulu is currently the most popular source for watching TV shows on the web, so why would they want to help out their competition. It looks like the move made by Hulu is an attempt to solidify their place as the most widely used website for TV entertainment.
So if Hulu wants to remain the first option that bored business people jump to, it doesn’t make sense to change a fee for access. However, more competition lurks just over the horizon. Cable companies like Comcast and Time Warner may try to build their own streaming video sites to compete with Hulu and TV.com. The cable companies hold one advantage in the fact that customers are already paying to receive cable in their homes. So the cable companies can try to leverage this into a package deal that includes home cable and web cable all for one sweet price. That sounds like a deal, even if it’s not, and people love signing up for a deal. If the cable companies manage to enter the online market, Hulu will be faced with a new strategic problem. Right now, Hulu makes money off of ad-supported content, but if customers prove willing to pay for this type of service, why not charge them?
Of course, I’m in favor of keeping online entertainment sites, like Hulu, free of charge. But this article makes me wonder; just how much longer will we be able to enjoy these sites for free? While more competitors are constantly entering this arena, free sites may become a luxury of the past.