Hulu CEO Jason Kilar announced today that the site is projected to make more than $240 million in revenue in 2010. That’s more than double the profits Hulu made last year, indicating advertisers are warming to the web-based television experience.
And they should, because viewers are already there. While some networks have resisted allowing Hulu to run their content, they’re only hurting themselves. If it’s on TV, it can be found online — with or without a network’s permission. Hulu provides a viewing experience that is both legal and reliable, unlike the multitude of pirate websites, where quality can be poor and viruses can be lurking in downloads.
Still, the CEO may have oversold it just a bit. Take this passage from the LA Times:
Kilar noted that 352 advertisers pitched their products and services on Hulu during the last three months –- delivering 800 million streams in October alone. He also cited industry research that users had a higher recall of the ads they watched on Hulu than on traditional television.
People remember the ads better because Hulu has a smaller variety of ads in rotation. Any regular Hulu viewer can tell you that you tend to see the same damn ads over and over again. And repetition builds recall. It does not, however, make us want to purchase Geico insurance.