Television has essentially been improving and developing since its inception. Tailoring programming and medium to the needs and wants of consumers has long been the mission of the industry. In the fast-paced world that we live in and use technology in, television has been incredibly accommodating to the needs of users to access television programs for their education and for their entertainment at their convenience.
Between busy work and family lives, consumers can’t always make it to their TV to watch their favorite television show. Consumers are paying for the TV service regardless if they use it. Now, consumers don’t have to speed home or change their lifestyle to watch a show. It’s now available on-line, and at many times for no additional fee, through websites such as Hulu.
Hulu’s marketing slogan reads “Watch your favorites. Anytime. For free.” (hulu.com) When comparing Hulu to standard television services, Hulu reigns as far as consumer demands go. The “watch your favorites” aspect appeals to the consumer majority. Consumer behavior experts pinpoint the TV programs that are in most demand for watching on-line and offer them on demand on Hulu. The “anytime” feature allows users to watch at anytime, especially if one cannot make the network airing.
The “for free” component is what’s most poignant in the industry. TV network companies put their content on Hulu because they know of its tremendous audience base and its potential for receiving portions of advertising fees. Hulu makes its money from fees and costs for corporate advertising. It’s advertising policy, from its website, reads: “Hulu’s extensive and ever-growing selection of premium content, along with our powerful distribution network including broad reach partners, niche communities and ubiquitous embeds, and our flexible targeting capabilities make Hulu an indispensable vehicle to reach your audience.”
Hulu is certainly here to stay in the TV industry: Its CEO, Jason Kilar, recently stated: consumers will be able to consume content where they want, when they want, how they want (http://www.ubergizmo.com/15/archives/2010/11/hulu_ceo_jason_kilar_on_the_future_of_tv_advertising_online.html).
1. Product: Television programming
2. Technology: Television, Internet, Computer
3. Industry: Television (education/entertainment) industry
4. Money: The control of the money in the industry is shifting from TV service providers to on-line TV providers. Advertisers are readjusting their spending to reach the largest target audience, which is appearing to shift towards on-line (for example, Hulu).
5. Law: Copyright laws and sharing will come into play as the industry shifts.
6. Audiences: The next generation is a more on-demand generation wanting their TV programs cheap and when they want them.
Obviously, watching programs on television when it’s airing isn’t going away anytime soon. However, it appears that on-line program viewing may no longer be seen as an alternative to watching but rather the new primary channel for some in such a fast-paced, in demand world. Advertisers will be sure to keep Hulu costs for users low through their tremendous spending to target those large audiences.