Commentary

Hulu - Online Video Department Store?

With Hulu only out of the gate formally for a matter of weeks, it's way too early to call the play on the NBC and News Corp. online video joint venture.

I confess to liking the concept of an online space where you can find and choose from a wide array of professionally produced content - from shorts to TV programs to movies. It cuts out wading through endless dross or content that is simply not of interest.

After all, YouTube (which I continue to use) remains the world's largest online video flea market while Hulu and others vie to become the world's greatest online video department store (Saks, Bloomingdales, Harrods, Nordstrom, etc., depending on your perspective).

But how is Hulu doing at this early stage? In terms of numbers - and user profiles - it really is too early to say. Nothing will settle down for a while, and I wouldn't put too much stock in the answers until a few months have passed. To date, however, I don't see a whole bunch of marketing - although it's entirely possible I'm missing it. If the marketing is minimal, one can assume this will impact the growth rate.

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As far as content, there is plenty on the site in totality, but a personal disappointment is the amount consisting only of clips or trailers. Whether movies or TV shows, just how compelling does this make the proposition? When some of these clips are less than 30 seconds and cover everything from comedies to dramas, their greatest contribution to the site is arguably helping to convey the impression of a wealth of content. No doubt some users find clips to be fine, as long as they are entertaining and there are enough of them (three clips for a series doesn't cut it). The risk, however, is that over-reliance on clips (with over-reliance defined by users, not Hulu) looks lazy - especially when Hulu claims to provide the web's most "comprehensive selection."

Now, being an optimistic and benign sort of chap, I assume the ratio of clips to full-length programs or movies will change over time. As I've been making repeat visits, it seems like it has already started - but the quicker the transition occurs the better. YouTube will almost certainly remain the leader in the short clips game, so Hulu needs to assert its position in full-length programming as soon as possible.

The site's design is something of a mixed bag, striving for a balance between being not only visually appealing but also easily navigable. Naturally, the "find-ability" of any one program will be critical to the venture's success. A user can opt to go a number of ways when either searching for a specific piece of content or idly browsing for something to catch the eye. Whether searching by genre, TV content, movies, popular programs or clips, plenty of options are available. And a horizontal scrolling function that greets users at the top half of each section is both visually appealing and a good way to promote content.

My only disappointment with the interface comes as you search different sections and are usually confronted by what looks like a glorified shopping list with hyperlink titles in alphabetical order on a white background. With Hulu's homepage setting up an expectation of a rich and visually engaging experience, such a drab and unimaginative interface is something of a let-down. Admittedly, it's very easy to peruse what's on offer - a critical factor - but one can't help thinking Hulu is selling itself a little short for a business whose "ambitious and never-ending mission" is to "help you find the world's premium content, when, where and how you want it."

If this is the face of online video's future, it could use a little more makeup here and there. On the plus side, not all pages are devoid of pictures. On some pages, images related to the content being browsed appear alongside written titles. Hopefully, it is only a matter of time before Hulu livens up all its pages in similar fashion.

On the whole - and assuming the addition of more content and design tweaks - Hulu looks pretty bright. The viewing experience is good when you take the plunge and dive into your movie or TV program, and that's what ultimately counts.

Broader behavioral questions exist about the numbers of people who will ultimately adopt online as a habitual means of watching full-length programming - and the frequency they will do so. This will be influenced largely by marketing and the competitive landscape.

Hulu's ability to draw upon content from the likes of NBC, Fox, Warner Bros. and almost 50 others plays tremendously in its favor. It's interesting to note that the much heralded Joost has - in relative terms - remained largely in the shadows in recent months. Reports have started circulating that Joost may be in trouble, based largely on some senior-level departures and a lack of breakthrough activity while the marketplace has become much more crowded and competitive. These claims don't seem to amount to a great deal, but with Hulu appearing to make progress, won't inspire confidence in Joost's backers or staff.

So, returning to the department store analogy, Hulu resembles a classic opening for the first store in a chain - plenty of early-stage tweaking of the proposition before hopefully settling into a pattern of steady (ad-supported) growth.
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