Jason Kilar on Hulu and content

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

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

Distributors will certainly play a role in the future of TV, but we believe that three potent forces will be far more powerful in shaping that future: consumers, advertisers and content owners.

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

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

come with intensified distribution competition.

tolerance for thin margins

* Traditional TV has too many ads. Users have demonstrated that they will go to great lengths to avoid the advertising load that traditional TV places upon them. Setting aside sports and other live event programming, consumers are increasingly moving to on-demand viewing, in part because of the lighter ad load (achieved via ad-skipping DVRs,

Consumers are demonstrating that they are the greatest marketing force a good television show or movie could ever have, given the powerful social media tools at consumers’ disposal.