Hulu plans to begin charging customers 'within weeks' say American reports. It is also looking to expand the service to portable devices including iPad and Xbox.
Hulu, which is thought to have generated $100 million in advertising in 2009, will continue to offer newer episodes free of charge, but it will charge viewers a monthly fee to see older episodes and other content.
Since its launch in 2008, Hulu has been one of the winners in OTT services with advertising has enabling it to be free. However with rates lower than for equivalent audiences on TV it is bound to experiment with pay models. The question is whether users already paying hefty pay-TV fees at home will also pay for the added convenience of Hulu, or whether it will encourage 'chord cutting.'