Not Quite TV

Hulu is a fantastic place. Despite it's limitations, Hulu is significant because of the paradigm shift it represents for mass media content creators. Unlike the music industry that told-the-teacher-style panicked when bandwidth and technology broke the barrier to entry for consumer and creator alike earlier in the decade, television execs have embraced the inevitible irrelevancy of their past business model.

To me, Hulu is poised to serve multiple purposes:

1. Promotion - The site gets the word out about a show in the best way possible: allowing viewers to watch the program.

2. Word of Mouth/Social Networking - Hulu allows viewers to watch shows recommended by friends whether over dinner conversation or from a link from their facebook page. This is a huge plus for the networks. Under the traditional TV model, viewers would have to start watching shows at the next new episode, which may eliminate some people because they can't start at the beginning. On Demand is available now too but Hulu has more options.

3. DVD Sales - My favorite implication of Hulu is the acceptance of giving content away for free now does not mean sacrificing dollars later. For example, if I like 30 Rock enough to watch it on Hulu, I may plunk down $25 for DVD set for myself or as a Christmas gift for someone. This line of thinking relies on one major assumption by studios and networks...

Watching TV on your computer will never replace watching TV on the big, HD flatscreen in your living room.

And I agree with them...until Microsoft integrates a Hulu module on my XBox 360. All bets are off when that happens.