Jason Kilar on Hulu and content

come with intensified distribution competition.

returns, which will be a function of disciplined per-user per-month licensing strategies, along with the benefits that

audience, thanks to the internet medium. And content owners will have the opportunity to make higher financial

distribution competition. Advertisers will be able to efficiently and effectively target their messages to just their desired

more content. We also expect to see lower consumer prices, which will be a function of a marked increase in

It is clear to us that — because of the internet and the increased competition/innovation it brings — the future of TV is

tolerance for thin margins

A key element of Hulu Plus is that we are able to compensate content owners more per-user per-month than anyone else for the same body of content. We are able to do this because of the subscription fee, our unusually effective and market-leading advertising service, and our

With the above dynamics in mind, we believe that there is going to be tremendous near-term innovation in the pay TV distribution business. The internet has made it possible for new entrants to innovate quickly and materially. Consumers will have more choice and convenience going forward. This competition will drive prices and margins down in pay TV... See more