Hulu to spend $500m on content
Hulu plans to spend about $500 million on programming this year, up $200 million on the $300 million Hulu spent on programming in 2011.
Jason Kilar, Hulu chief executive, says the dual revenue model of subs and advertising meant better content and earlier windows were now available. “We believe our approach will enable us to secure more valuable content for our users and to secure content in more attractive windows than would otherwise be possible.”
Hulu generated about $420 million in revenues in 2011, an increase of 60 per cent on the previous year.
Kilar claimed Hulu is attracting more than twice the number of new subscribers each day when compared with last year, and Hulu Plus now has 1.5 million subscribers
Hulu’s owners put the site up for sale last year, but despite receiving several offers that valued the company at more than $1 billion, they decided not to sell.