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Advertising on Hulu

Internet advertising has taken a huge step into our world. Entertainment providers, Hulu, enabled advertising on their shows. Thus, making all of its viewers watch advertising and still pay the monthly subscription. However, on Hulu’s website they justify the fact that there are adverts in every show is to reduce the monthly subscription and make it accessible to almost everyone.

Though Hulu have thousands of shows available on their Free and Subscribers feed, advertisings appear everywhere in Hulu. However, companies advertising on Hulu only pay when their adverts are 100% streamed. If not, Hulu wont get anything from it.

Hulu CEO Jason Kilar, speaking at the Ad Age Digital Conference in New York, also said the online video service now has 2 million paid subscribers, up from 1.5 million at the end of 2011. For the year ended December 31, 2011, Hulu’s revenue totaled $420 million, an increase of 60% over 2011. “The advertising industry is very robust online and at Hulu specifically. The Hulu Plus business is resonating with consumers,” he said, when asked what’s fueling the company’s revenue growth.

But now, Hulu viewers can tailor their advertising preferences according to a survey that appears whenever a show is chose to be viewed to the viewer. Hence, viewers get their own advertising, and Hulu get all the cash. “Hulu’s 100% completion rate model is a big step in the right direction that will positively impact digital video performance,” said Donnie Williams, chief digital officer, Horizon Media, in a prepared statement.




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