People’s television sets may become a little dusty thanks to Hulu.com, the newest addition to the online video craze. NBC Universal and News Corp. publicly launched its free streaming video Web site March 12. Hulu offers over 250 television titles, from current hits such as “The Office” to classics such as “Buffy the Vampire Slayer” and even “Dragnet,” as well as 100 full-length feature films that include “The Big Lebowski” and “Ice Age.” It also provides clips, news stories and sports events, including LSU’s win over Ohio State in the National Championship game. There are several sites that offer similar content on the Web, but Hulu distinguishes itself from the others, Hulu’s spokesperson Christina Lee said. “Hulu’s unique value is to aggregate content across all premium content providers and deliver that media to users in a high-quality way through an elegant user experience,” she said. “Our mission is to bring media to users on their terms – when, where and how they want it.” As a result of online video Web sites’ accessibility and lack of lengthy commercials, people have begun to increasingly watch more television programs on the Internet. “People are spending more and more of their discretionary time online,” Lee said. “We want to be relevant in that environment.” Although Lee was unable to provide specific numbers because the site is still in its early stages of testing, she said traffic to the site has exceeded the company’s expectations. DVD-rental companies are confident Hulu will not affect them. Netflix, which offers more than 90,000 titles, recently upgraded its website to allow members to watch movies for free on their PCs. “We are aware of Hulu and very conscious of what’s going on with Hulu and other online offerings,” said Steve Swasey, Netflix spokesperson. “Neither Hulu nor any other online video website has impeded the growth of Netflix.” Netflix is in good condition, he said. By the end of 2007, it had 7.5 million subscribers, and Swasey expects it will continue to grow. Randy Hargrove, Blockbuster spokesperson, said the company does not feel any threat from Hulu’s advancing technology, but rather they see it as an opportunity. “If there’s technology or an innovation that can increase consumer awareness, that is positive news,” he said. “We think we are positioned to take advantage of this potential increase in this area. The digital area is growing, and our mission is to embrace new technology. New technologies are an opportunity.” Blockbuster offers more than 5,000 titles in its stores, 80,000 titles online, as well as 9,000 downloadable titles, Hargrove said. “Blockbuster is going beyond its stores,” he said. “We are participating in a bunch of different channels.” In 2007, DVD rentals made up 72.2 percent of the $36.2 billion made from movies, while digital and online videos made up .1 percent, according to Kagan Research analysts. Although the digital market is predicted to grow by 2009, statistics show that rental and retail services will remain a large portion of the movie industry, Hargrove said. Web sites such as Hulu may affect people’s viewing habits and possibly decrease television usage, but they will most likely not faze out the television all together, Lee said. “Hulu has the opportunity to have a very strong future…but in no way does it suggest that the incredibly large network business and cable business are going away any time soon.” Emily Erickson, mass communication professor, said Hulu is a good supplementary outlet for television shows. “From a TV industry perspective, it represents a pretty savvy attempt to adapt to the way many of us watch TV these days – digitally speeding through ads and constantly multitasking with our laptops,” she said. “From an audience perspective, it’s great because outlets like Hulu can liberate good TV shows from time-slot hell.” She said while Hulu is appealing, and its quality is superior to YouTube.com and cable networks’ streaming Web sites, it will not pose a serious threat to other media conglomerates because of its lack of library content. Erickson said Hulu is ultimately intending to draw attention toward the television, not away from it. “[NBC and Fox] are trying to use Hulu as a promotional tool rather than drawing eyeballs away from the TV itself,” Erickson said. People may like a television show they see on Hulu and then continue watching it on television, she said. Or they may use Hulu to catch up on a show. “I don’t believe in the impending death of TV,” she said. “It’s just going to adapt like any other media industry faced with new technology. It’s inevitable.”
—-Contact Drew Belle Zerby at [email protected]