When it comes to online paid TV, viewers are clearly voting with their dollars and the dollars are going (mostly) to Netflix and Amazon. It’s increasingly hard for Hulu with only 6 million subscribers to Netflix’s 50 million and with Amazon’s ever-increasing content library.
The key difference between Hulu’s service and Netflix and Amazon’s is, of course, the ads. Hulu took cues from traditional TV in alternating viewing content with metered ads, but now viewers have had a taste of the alternative, the paid subscription with no ads model, it’s evident that in order to retain its position with the big leagues, Hulu will have to find a new way to integrate ads.
Netflix is continuing to show a hardline position on video ad integration, recently saying no to a deal with Ritz Crackers. Netflix’s CEO, Reed Hastings spoke strongly at the last earnings call: “It’s fundamental to that control orientation that we don’t cram advertisements down people’s throats.”
The paid subscription model continues to be wildly successful for Netflix, so we likely won’t be seeing ads on the platform any time soon. Hulu, however, is apparently not moving to shifting away from ads entirely as it is beholden to traditional TV networks Fox, NBC, ABC and more. Word is they are considering a pay-for-no-ads model similar to music platform Spotify.
How advertising will fit into the picture in the future of online video remains to be seen, but one thing is for sure: viewers will decide.
