Why Hulu On The Xbox 360 Console Makes Sense

The press conference for Microsoft's Xbox 360 and PC at E3 in Los Angeles is expected to be starting 5 minutes earlier tomorrow for a very special, last minute addition which could well be Hulu's joining Microsoft's Xbox Live platform.

We already know that Hulu is set to launch in the UK by the end of the year and that only a few details remain to be settled. The free online video website already has a strategic partnership with French-based Dailymotion so plans for a pan European expansion is not out of the picture. Getting Microsoft on its side could well be the turning point for the service backed by NBC, Fox, Disney and many other networks and studios.

Youtube might be the most popular online video website right now but it is certainly not the most profitable. According to Comscore, Hulu could be getting up to 42 million unique visitors last month and Nielsen Online reckons that it has been growing at 490 percent year on year while being profitable all the way.

Unlike Youtube, Hulu's content is 100 percent legal and, some would say, traditional. Hulu has been more careful about expanding outside the US, preferring to go to European countries where advertising revenues are still significantly better than say in Africa or Asia.

Microsoft could integrate Hulu on the Xbox Live and take on the responsibility of selling out the advertising inventory generated in exchange. The site has been struggling to sell 100 percent of its inventory as its traffic surged which means potential lost revenues.

As for Hulu, the 20 million or so extra unique visitors from the Xbox Live environement could potentially be a lucrative niche market since they are less likely to have been exposed to Hulu's web-based desktop platform.

and join more than 1450 other followers.

Our Comments

Hulu should come to the UK, that's something that everyone is asking for. However, it could also undermine existing contracts with key partners here in the UK. For example, should viewers be allowed to view content well before they come to the UK market? With Kangaroo out of the picture for now, we strongly believe that Hulu has the strongest line up of all potential VoD solutions.

Related Links

Xbox 360 E3 press conference moves up 5 minutes for “special addition”

http://bit.ly/koTNX

Hulu Questions Count of Its Audience

http://www.nytimes.com/2009/05/15/business/media/15nielsen.html

Rumour: Hulu to be offered on Xbox 360

http://www.techdigest.tv/2009/06/rumour_hulu_to.html

Hulu next for Xbox 360, says Twitter tweet

http://bit.ly/24FnJ

E3: Xbox 360 briefing to be held earlier for last-minute add

http://news.punchjump.com/article.php?id=7932