Hulu won't be clowned by iTunes

Hulu won't be clowned by iTunes
"Hulu is a very simple business model," Kilar said after his speech. "We believe that if we provide an advertising service that has higher brand recall, higher purchase intent (from users)...relative to billboards, radio and newspapers, advertisers will respond to that. And they are. That's why they are paying premium for ad spots on a higher cost per thousand (CPM) relative to other environments."Adams also asserted that Internet users won't tolerate the same number of ads online as they do from traditional TV. Hulu posts four times fewer ads into its films and TV shows as television broadcasters and Adams suggested that visitors aren't tolerating more. "(Adams) made it sound like we tested more ads and they didn't work," Kilar said. "We haven't done anything different than what we're doing now. It's always been two minutes of ads for every 22 minutes of content." In its first year in business, Hulu has surpassed almost everybody's expectations, certainly Google's. Execs at YouTube's parent company at one time referred to Hulu as "The Clown Company." The joke turned out to be on them. Hulu has become a force when it comes to offering full-length movies and TV shows. Kilar won't share data on revenue or user adoption, but did say Hulu now sees 12 million monthly visitors and serves 145 million monthly streams. Among Hulu's biggest accolades is that YouTube has followed it into offering full-length TV shows and feature films.