Jason Kilar on Hulu and content

It is clear to us that — because of the internet and the increased competition/innovation it brings — the future of TV is

tolerance for thin margins

returns, which will be a function of disciplined per-user per-month licensing strategies, along with the benefits that

distribution competition. Advertisers will be able to efficiently and effectively target their messages to just their desired

* Traditional TV has too many ads. Users have demonstrated that they will go to great lengths to avoid the advertising load that traditional TV places upon them. Setting aside sports and other live event programming, consumers are increasingly moving to on-demand viewing, in part because of the lighter ad load (achieved via ad-skipping DVRs,

come with intensified distribution competition.

more content. We also expect to see lower consumer prices, which will be a function of a marked increase in

The above trends are a reality and we believe the wise move is to find ways to exploit these new trends and leverage them to build great businesses. History has shown that incumbents tend to fight trends that challenge established ways and, in the process, lose focus on what matters most: customers. Hulu is not burdened by that legacy.

audience, thanks to the internet medium. And content owners will have the opportunity to make higher financial