Liveblogging Hulu CEO Jason Kilar At NeeTeeVee Live – He’s Obsessed

Jason Kilar is giving the keynote at the NeeTeeVee Live conference. A big wave: He talks about the 12.6 billion streams online today. Users are responding. Hulu was founded to take a look at this new environment. Hulu is looking to establish premium content like what Starbucks did for coffee. Making it easy to consume and put it everywhere.

Media is an impulse business and the first law is to make it easy to consume. That is their vision. Their formal mission is to help find and enjoy the worlds premium content when, where, and how they want.

Obsessing: Jason was inspired by Disney World. Talks about attention to detail similar to Disney on how they keep their theme park clean. Specifically the detail around the user experience screen real estate..etc.

He is talking about the backend and how they change the user experience based upon the search request on the site. Again back to his obsessive user experience.

I’m impressed by their focus on user experience.

Results:
12 million monthly users; 145 million monthly streams; embedded 1.5million times on over 60k sites. Attracted over 115 top content owners; content partners seeing dramatic lift in terms of their overall onine business. Advertiser demand exceeded expectations. I’ve been tracking this for some time and this is the future business model see my link to past post.

Questions from audience:
Advertisers pulling back: seeing uptake on video and not concerned about advertising right now – emphasis is on the brand.

International plans and key territories? Won’t go into detail on their roadmap. He is indicating that they are very focused on a global vision.

Cnet is saying they are having problems recruiting advertising and ability to serve up ads. Won’t share any financial details. Jason is talking about monetizaiton around premium videos. Ad supported video is $80b. Ad revenue is critical for Hulu. Jason isn’t really giving an answer on this.

Product placement: hot spotting is good on the Internet and he sees this as being big and is possible on the Internet today. It’s a function of getting the user base large enough. Emphasis on critical mass.

What’s holding Hulu back from moving fast? They are a startup and the reality is that they have limited resources.

Update: Venturebeat has a story among others on Techmeme.

My Prediction is Validated About Business Model Of Video – Give Users What They Want

Taking credit for big trends is all the rage these days of blogging. So here is my self promotion post on the future of online video and future of online advertising. 🙂

Today the news in the NY Times tells us about the future of online video and advertising. It comes as a shock to many people including Mike Arrington, Mathew Ingram, and others. With headlines from Wired like Hulu Celebrates First Anniversity, Gain Popularity By Serving Fewer Ads.

As predicted by me years ago and blogged here at Furrier.org – “Content is the Ad”

Hulu’s success is due to the a great user experience verses forcing the maximizing of moneitization. That is why Hulu is not littered with Ads. Why? Because the content is the ad. SNL’s franchise on TV is their product and their online distribution (widgets) is their ad. NBC TV broadcast was the product and their online coverage was their advertising. Why do the big content people do this? This is going to sound too simple – they know what the users want. And their product (main content franchise) gets a reward for it – more viewers. Badda bing. Simple.

One more time – CPM ads don’t work in social network or online in targeted user groups – said again for the zillionth time

How do you monetize: the plans for this new content model online will be different. Expect to see new contextual and behavior tools that serve users – a utility of some sort. For now it’s all about cross-promotion.

Successful online strategies have been successful if they do three things: 1) easy to use, 2) reduce steps, and 3) save time

Anything online that distracts users will lose – online experiences must be value-add. Advertising can be value-add and I expect new advertising solutions to be of value.