Who? Lou! Hoo! Lu?

At an industry summit in NYC on Oct. 21, News Corp Deputy Chairman Chase Carey revealed that online video hub Hulu will begin charging users for content as soon as 2010, according to Broadcasting and Cable. Carey told reporters that a subscription system is likely, although some content will probably continue to be offered free of charge. “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,” he said.

If Hulu wants to charge for their service, they are certainly entitled to do so. I question the wisdom of this decision in this economy. There are so many alternatives that users have to record television episodes. TiVo, DVR, iTunes, DVD and even old school VHS tape are just some common alternatives. Of course, if one forgets to set the device, there are always reruns and box set DVD's. There are varying costs associated with each method. The difference is that none of these began as a free service. Hulu currently limits commercial breaks. Perhaps more commercials on the Hulu website and within the programs is the way to go. Hulu is a web convenience, but it's not a service that users can't live without. I may be wrong, but I see fees driving Hulu users away. I don't understand their business model going forward. Looks like a bait and switch.