Cup of Joe: Hulu Is Losing Out On Revenue, Are You?
About 3 years ago I got really angry with something that Wolf Blitzer said on CNN, and I canceled my cable. At the time everyone thought I was crazy. well actually everyone still thinks I am crazy, but not as much as back then. Because now a days services like Hulu and Netflix are slowly carving away at cable television’s stronghold. Despite the fact that these companies are obviously following a much larger trend, it seems at times it has been an uphill battle.
So, doesn’t it seem that if you were one of the few startups pitted against the largest media industries in the world you would do everything you could to tie up revenue leaks? You would think so, but that doesn’t seem to be the case for Hulu.
You see, yesterday I am watching reruns of my favorite TV sitcom on Hulu. And during the commercial break this message appeared:
I watched two episodes, each with 3 commercial breaks containing 2 commercials per each. Meaning that Hulu failed to deliver 12 ads to a loyal user. Now I know what you might be thinking, OMG I can’t believe they aren’t delivery the ads correctly! Well that’s what I thought at first but the truth is, I hate ads so this didn’t bother me that much.
What bothers me is the fact that Hulu obviously has a mechanism in place to identify when an ad isn’t working, and the only purpose of that mechanism is to display the above message. Why aren’t they showing an alternate ad? They could even show a static image ad that they sell at a reduced cost to compensate for heavy bandwidth. But instead they are showing this ridiculous message.
Building a successful company is a game of inches. If you aren’t constantly looking for footholds to exploit, then you are constantly standing still.