Slate talks about why Hulu must lower the quality of service before it’s too late.
The problem is that Hulu knows it’s too good. If it were a startup company, like Facebook or YouTube or Amazon, this wouldn’t be a problem at all. It would just go on being too good until it grew to dominate the market. Then it would go public and set about figuring out how to turn a fat profit. But Hulu isn’t a startup. Owned by NBC, News Corp., Disney, and a private-equity firm, it’s a traditional media company that has been acting like a startup in order to defend its old-media business model. And that’s why the fun can’t last. Hulu has to make itself less awesome, and soon, before it eviscerates its own corporate parents.
Similar situations are arising on this side of the Atlantic too. Old media companies will not blaze a trail into the new “all content, all the time” era. The tech companies that can move forward quickly don’t own any content to do it. We are at an impasse.