Hulu vs. Hulu Plus

Do you often stay up at night counting sheep and wondering how you will wake up the morning after? I do. I am one of those people, who take hours to fall asleep, and I have found my remedy is to watch TV; it puts me to sleep after the movie is over. So how is this related to Hulu.com you ask? Well, I have noticed that in the past years Hulu commercials have started to become a hassle. They used to be short and infrequent which didn’t bother me, but now if I am watching a show that is forty-five minutes long, there will be a commercial every seven to nine minutes, which lasts approximately fifteen to forty-five seconds. This commercial time can build up, and is quite the hassle, and I feel that as a customer who has been religiously watching Hulu shows for a good four to five years, maybe I should be given privilege and have some of the commercials taken away. So, why are there commercials on Hulu?

The commercials on Hulu are the way the company generates profit, as it doesn’t charge for the standard Hulu free shows, for each ad they show they are paid by an advertising company or the company of the product, and all of these ads are screened and showcased to customers to whom they will appeal. This is all fine; profit must be generated in a free-market economy, except that these same commercials exist even on the Hulu Plus premium plan. Hulu Plus is a plan that the company offers to give its customers more options and availability of shows at the “low” price of $7.99 per month. However, this is not necessarily the case, there is still a limited amount of shows and movies offered, and they too have ads playing. Hulu defends its choice that the “the reason [they] include advertisements in Hulu Plus is to reduce the monthly subscription price of the service.”   In order to deliver a great service at a low price, they argue that they must include ads even in the paid-service, otherwise prices would be much higher and they wouldn’t be to afford to screen so many different genres. As someone who just watches the free Hulu shows I can’t argue much with them, however if I were to be paying for Hulu Plus and was stuck watching the same commercials over and over again, I think I would be very frustrated. I have found this to be the case by many customers’ complaints on the web.

Where will this lead for Hulu as a company? Their ads promoting their services are becoming more and prevalent which may signal to downfalls in their profits and a worrisome future for the company as a whole. If they continue to be unable to provide a good service at a low price and are outpaced by their competitors, soon all of those frustrated customers will seek to go elsewhere for online TV streaming services. 
-Kalina
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