Business Model Change for Hulu?

Hulu originally hoped to create an advertising-supported online video site that essentially was an archive for television programming, operating much as a digital video recorder service.

But ad revenue has been disappointing, and the owners disagree on what to do about the service. So now it isn't so clear what Hulu might become.

Some spectulate that Hulu might in the future become a sort of online cable service. Instead of a warehouse of episodic content, Hulu could become a full-fledged online cable operator. That means live shows and video on demand, all accessed through Hulu.

That might work for the content providers, but it won't help multichannel video entertainment providers.

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