Free Service > Paid Service
Here is something I would put into the ‘what not to do’ category of business. Taking a service that was primarily free from the beginning, getting a huge user base, and then change the rules by making the users start to pay for the service. This is exactly the direction the online video site Hulu is heading into 2010.
To quote Chase Carey, Deputy Chairman of News. Corps (co-owners of Hulu) had this to say recently:
‘It’s time to start getting paid for broadcast content online. I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value. Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business’
Is the advetising dollars not bringing in enough cash flow? If these rumors are true, and Hulu does decide to go through with this ridiculous move, they will most certainly be shown the power of the internet and the use of social media and how it can be used to quickly make anything into nothing. Hulu is showing major disrespect to its loyal fan base.
