Q2

We recently closed a big second quarter for Hulu. In the spirit of our Q1 blog post, we’d like to share results made possible by our recent innovations combined with a steady focus on our customers (users, advertisers, and the content community).

– The slope of Hulu Plus’s subscriber ramp is higher than we previously forecasted. We just closed our biggest month in Hulu Plus paid subscriber net additions by a healthy margin; we added more paying subscribers in June than we did in April and May combined. The below is our month-end Hulu Plus paying subscriber numbers since we exited our private beta period in November 2010. In our first 7.5 months, we are fast approaching the 1 million paying subscriber milestone (we already have over a million when including those in a one-week free trial period). We anticipate exceeding 1 million paying subscribers before the end of this summer; previously we had forecasted crossing that threshold around the end of this year. We are extremely encouraged by the ramp of this business:

– We have always believed that our path towards creating a special company lay in our ability to delight our customers. The key to delighting content owners rests in the economics, and Hulu Plus is already revealing our ability to compensate content owners at the high end of the market for a given body of content. Today, we proudly and profitably pay the content community approximately $8 per subscriber per month for the content offering you see today on Hulu Plus. A portion of the $8 payment to the content community comes from our $7.99 subscription fee; the balance comes from the revenue we generate through advertising. As Hulu Plus increases in scale and scope, we believe significantly more dollars in aggregate will move to the content community than has historically been the case in the industry. These economics are made possible by our ability to thrive on low margins and the unusually effective Hulu advertising service we’ve built and will continue to innovate. A very positive trend for the content community.

– We’ve continued our quest to make Hulu Plus available on every internet connected device. In the past 90 days, we have made Hulu Plus available on Xbox 360 and Kinect, select Android smart phones, TiVo Premiere DVRs, and select Samsung Blu-ray players. Collectively, this means an additional 25 million devices are capable of accessing the Hulu Plus service. Hulu Plus is now accessible on leading consumer electronic devices and mobile operating systems with a combined installed base of more than 100 million. Expect that number to grow aggressively over the balance of 2011.

– The content library on Hulu Plus has also grown considerably. Since the launch of Hulu Plus in November 2010, the number of total hours of content on the service has grown 67% from 9,000 to 15,000. The total number of full episodes on the service has grown 115% from 13,000 to 28,000. The number of TV series on the service has grown 129% from 950 to 2,180, which includes 76 series from Viacom brands like MTV, Comedy Central, and VH1. The number of clips has grown 85% from 13,500 to 25,000, and the number of movies has grown 222% from 450 to 1,450, including hundreds of Criterion Collection and Miramax titles. All 15 seasons of South Park, including the current season, were added to Hulu Plus in June, along with a rotation of episodes appearing on the free, ad-supported Hulu service. Hulu also exclusively premiered the U.K. hit Misfits on June 20th, which quickly became one of the most popular shows on the service. Through an exclusive first run, multi-year distribution deal, Hulu has introduced Misfits to a U.S audience of millions.

– In Q2, Hulu remained the leader in U.S. online video advertising with the largest market share (revenue) of a rapidly growing market. Hulu serves nearly 2x the number of video advertisements of the next largest advertising service (Source: comScore). Nielsen IAG measures the efficacy of Hulu’s video advertising service at nearly 2x that of linear video advertising services.

It’s been a big Q2. We remain on pace to approach half a billion in 2011 revenue. Thank you for making the above possible. We remain a team that believes in the value of convictions, thoughtful stubbornness, and the relentless pursuit of better ways.

Jason

Jason Kilar
jason@hulu.com
CEO, Hulu

34 thoughts on “Q2

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  16. Dave, with the Roku as little as $60, why would you settle for a wii channel that at best will utilize component, rather than the Rokus HDMI, not to mention all the other Roku channels available?

  17. “- We’ve continued our quest to make Hulu Plus available on every internet connected device.”

    Does this mean I can stop debating between a Roku and a Boxee Box and just wait for the Wii channel?

  18. JASON, hello. Do they call you Mr. Hulu?
    My name is Angela… I just read your exciting blog.. Congratulations! Rock on.
    HULU PLUS ROCKS, DUDE.
    I am an incredibly satisfied new subscriber to HULU PLUS… Haha, lucky for me (and for you…), the reason I joined HULU PLUS was somewhat on a whim.. My husband and I were doing an IMDB search on Edward James Olmos… I was then enlightened that I had somehow completely missed the existence of the 2003-2009, miniseries-turned-series, “Battlestar Galactica.” I thought it was worth a look. It was!
    (WINNER WINNER CHICKEN DINNER)
    After some “bitTorrent-ial” headaches, I thought, well, let’s check HULU. I’d had some fun dabbling around HULU in the past, delighting in the series, “HUMAN TARGET.”
    After viewing a clip/trailer of, “Battlestar,” I realized HULU was now offering HULU PLUS, allowing me the option to delve into the complete series. I chuckled, and thought, well, for $8, I’ll give it a whirl.
    To my delight, I found I could access every last second of anything and everything, “Battlestar,” (and for that matter, your incredibly vast library) for $8/month… Not to mention, this is on a month-to-month agreement, with no commitment, and HULU PLUS accepts prepaid cards to boot. I even got a month free for pinning the “H” to my windows task/toolbar.

    Also, I am no longer a cable TV subscriber, as my penchant for “viewing options” was proving to be outrageously expensive, costing my family over $3000 a year..
    I decided to “go social,” per HULU’s suggestion, and skeletally connect my HULU PLUS to my FACEBOOK. I’d had some comments I was hoping to share, regarding my complete satisfaction in viewing, “Battlestar Galactica,” on HULU PLUS… I then came across your blog, and was thrilled at the spike-y climb I viewed on your chart of new subscribers (above).
    I also thought, hmmm, I might want to look into applying for employment in some capacity, with my new favorite not-so-guilty pleasure, HULU/HULU PLUS..
    So, FYI, I’m diggin’ HULU PLUS. I’d have to say you guys right up there with SLICED BREAD on the “great-o-meter.”
    In a nutshell, Mr. Jason Kilar–YA’ DUN REAL GOOD. Well done.
    Lastly, regarding the very-present advertisements during the shows–I can’t say I hate the commercials.. Hey, for $8 a month, I’m happy to pay attention to the excellent, tailor-made ad-campaigns you have running..
    JASON, if we were in the same room, I’d give you a hug & a smooch on your cheek, and tell you, “Good JOB, man!”
    HULU/HULU PLUS offers a great product (and service) to virtually EVERYONE on the planet.. Your company is RELEVANT and USER-FRIENDLY–and you are NOT ripping people off.
    lol.
    YAY.
    Thanks so much–for being a part of the solution..
    We all know what THAT means——-you’re NOT part of the problem.
    Respectfully,
    Angela Blackwell

  19. JASON, hello. Do they call you Mr. Hulu?
    My name is Angela… I just read your exciting blog.. Congratulations! Rock on.
    HULU PLUS ROCKS, DUDE.
    I am an incredibly satisfied new subscriber to HULU PLUS… Haha, lucky for me (and for you…), the reason I joined HULU PLUS was somewhat on a whim.. My husband and I were doing an IMDB search on Edward James Olmos… I was then enlightened that I had somehow completely missed the existence of the 2003-2009, miniseries-turned-series, “Battlestar Galactica.” I thought it was worth a look. It was!
    (WINNER WINNER CHICKEN DINNER)
    After some “bitTorrent-ial” headaches, I thought, well, let’s check HULU. I’d had some fun dabbling around HULU in the past, delighting in the series, “HUMAN TARGET.”
    After viewing a clip/trailer of, “Battlestar,” I realized HULU was now offering HULU PLUS, allowing me the option to delve into the complete series. I chuckled, and thought, well, for $8, I’ll give it a whirl.
    To my delight, I found I could access every last second of anything and everything, “Battlestar,” (and for that matter, your incredibly vast library) for $8/month… Not to mention, this is on a month-to-month agreement, with no commitment, and HULU PLUS accepts prepaid cards to boot. I even got a month free for pinning the “H” to my windows task/toolbar.

    Also, I am no longer a cable TV subscriber, as my penchant for “viewing options” was proving to be outrageously expensive, costing my family over $3000 a year..
    I decided to “go social,” per HULU’s suggestion, and skeletally connect my HULU PLUS to my FACEBOOK. I’d had some comments I was hoping to share, regarding my complete satisfaction in viewing, “Battlestar Galactica,” on HULU PLUS… I then came across your blog, and was thrilled at the spike-y climb I viewed on your chart of new subscribers (above).
    I also thought, hmmm, I might want to look into applying for employment in some capacity, with my new favorite not-so-guilty pleasure, HULU/HULU PLUS..
    So, FYI, I’m diggin’ HULU PLUS. I’d have to say you guys right up there with SLICED BREAD on the “great-o-meter.”
    In a nutshell, Mr. Jason Kilar–YA’ DUN REAL GOOD. Well done.
    Lastly, regarding the very-present advertisements during the shows–I can’t say I hate the commercials.. Hey, for $8 a month, I’m happy to pay attention to the excellent, tailor-made campaigns you have running..
    JASON, if we were in the same room, I’d give you a hug & a smooch on your cheek, and tell you, “Good JOB, man!”
    HULU/HULU PLUS offers a great product (and service) to virtually EVERYONE on the planet.. Your company is RELEVANT and USER-FRIENDLY–and you are NOT ripping people off.
    lol.
    YAY.
    Thanks so much–for being a part of the solution..
    We all know what THAT means——-you’re NOT part of the problem.
    Respectfully,
    Angela Blackwell

  20. A lot of people complain about the ads but the truth is I’d rather pay $8 for a few ads with Hulu Plus than $80 for many ads with cable or satellite.

    And I also don’t want you to sell to Yahoo. They would probably rename it Yahooloo.

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  22. If there was an option to watch Hulu+ for 8$ with ads, and allow us to pay more to watch Hulu+ without ads, that would be perfect.

  23. Starz would be a good addition. Spartacus is awesome and Torchwood was great on BBC!

  24. The service doesnt work well. I often have trouble streaming to my iPad and unfortunately the service is not available on apple tv or my samsung DVD player (purch in Dec 2010), so I’m kind of screwed. Also, would prefer to pay more and not have ads.

  25. I have been a Hulu Plus subscriber for 3 months. I have seen the ads increase 200%. In the first month you had at most 2 ads per 30 minutes of programing. Now it’s 8 per 30 minutes of programing. I subscribed to get away from all the ads on pay TV and you are going the same direction. I don’t think this is anything to brag about. Please get rid on the ads.

  26. Odd thing to tout as an accomplishment – that you provide twice as many ads as any other paid service. I don’t want to watch ads on a paid service that provides little quality programming to begin with,

  27. Hi. Once again I came by to check my queue. Will all the huge tech improvements you speak of, why is it so difficult to indicate which entries are CC for the 35 million deaf/HOH Americans who could be enjoying your site? And becoming paid members? And why are so many clips not CC? We need this remedied. Of course, it is a lot of lost revenue for you, too.

  28. If all it takes is approximately $8 per month to have all the Hulu+ content why can’t you offer the end user a model at $15 per month for zero advertisements. I would gladly throw $15 per month at your service, letting you pocket the extra $7 (and you would not need the same overhead of additional ad sales team/support). Please make this happen.

  29. It makes me really happy when companies like Hulu succeed. I’ve been a member of too many online subscription services that were either shut down or absorbed by larger companies (Lala.com being the most disappointing that it was shut down). It’s great to see Hulu doing so well because that means I’ll be able to enjoy it for (hopefully) years to come.

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