Hulu Plus reaches 1.5 million paid subscribers mark

The streaming movie and TV show service Hulu gave an update on both its subscribers and its overall revenues in a blog post on Thursday. The company said that it went over the 1.5 million paid subscriber mark for its premium Hulu Plus service. Hulu said, "Hulu Plus has reached 1.5 million paid subscribers faster than any video subscription service launch (online or offline) in U.S. history."

Hulu's owners had though about selling off the company in 2011 but later announced in October that Hulu would take down the virtual "For Sale" sign.

Overall revenues for Hulu, which also includes money from ads, came in at $420 million for 2011, a 60 percent increase compared to 2010. The blog post said, "Overall the Hulu ad business grew aggressively and Hulu Plus materially exceeded our plan." Hulu also added a number of hardware platforms where users can download and user Hulu Plus apps in 2011, including the Xbox 360, Wii and 3DS consoles.

Hulu believes that it's combination of advertising in the videos it streams with the Hulu Plus subscription service gives it an advantage over other similar services such as Netflix. It states:

At scale, our model allows us to profitably pay content owners approximately 50 (percent) more in content licensing fees per subscriber when compared to other similarly priced online subscription services. We believe our approach will enable us to secure more valuable content for our users and to secure content in more attractive windows than would otherwise be possible.

Hulu says it will spend $500 million to secure more content for the service in 2012.

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12 Comments

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I got rid of my cable bill and bought a roku box. Between Amazon and Hulu, I can watch all my shows that I used to watch on cable...while saving $90/month.

steveomac said,
I bought this BS is was super ****ed there was still ads in it, complete waste of money.

I'll stick with netflix

Obviously you failed to read up on what you would be paying for. Nowhere did they claim NO commercials. You pay for HD options and FEWER ads. Failure on your part does not make a service BS.

steveomac said,
I bought this BS is was super ****ed there was still ads in it, complete waste of money.

I'll stick with netflix

Except on Hulu Plus you can get:

* anime with subtitles
* the entire Criterion Collection
* the Korean drama collection

KingCrimson said,

Except on Hulu Plus you can get:

* anime with subtitles
* the entire Criterion Collection
* the Korean drama collection

I'm sure .005% of users would love those!

KingCrimson said,

Except on Hulu Plus you can get:

* anime with subtitles
* the entire Criterion Collection
* the Korean drama collection

Netflix has some of the better Korean movies that came out on Instant, like say The Man From Nowhere, The Good, The Bad, and the Weird, I Saw The Devil, Oldboy, and that's just off the top of my head. Netflix also has an anime and supports subtitles, and I'm pretty sure they have most of the movies if not all from the Criterion Collection, and I don't have to watch a single commercial for the same price as Hulu Plus.

KingCrimson said,

Except on Hulu Plus you can get:

* anime with subtitles
* the entire Criterion Collection
* the Korean drama collection

I am obligated to mention that crunchyroll.com is a much better source for subtitled anime and Asian dramas. Go give that site business, I have been paying for it for over a year, and haven't regretted it for a single millisecond.

dekoy said,
People pay for this sill commercial filled service?

People pay much, much more for a 500% more commercial filled service - cable TV.

Rohdekill said,

People pay much, much more for a 500% more commercial filled service - cable TV.

You don't understand "dekoy" only watched free torrents. He's a thief and doesn't understand why pay for it when you can steal!

dekoy said,
People pay for this sill commercial filled service?

I havent watched REAL TV in years. ever since I found out 1/3 of all TV shows are commercials.

Downloading FTMFW

There's probably more to it.. but they're going to spend $500 million on a service that only made them $432 million ($420mil from ads, plus 1.5 mil * $8 from monthly subscription)..

Edit: Never mind.. I guess after 12 months of 1.5 million subscribers they do turn a profit.