Zucker: Hulu close to breaking even

DIGITAL: Will keep content on the Web for now

By Jennifer Netherby -- Video Business, 5/28/2009

MAY 28 | DIGITAL: Overnight video star Hulu is close to breaking even, NBC president and CEO Jeff Zucker said at the Wall Street Journal’s AllThingsDigital conference Thursday.

Now Hulu, a joint venture between NBC Universal, News Corp. and Disney, “has to figure out the monetization game,” he said. One additional way the ad-supported site might boost revenue is through subscriptions, which Zucker said Hulu is open to, according to the WSJ’s recap.

Hulu has shot up to be the third most popular video site since its launch last year, but has come under some criticism from users lately for pulling some content and limiting viewing beyond the computer. Earlier this year, Hulu pulled FX show It’s Always Sunny in Philadelphia.

Zucker said the goal is to eventually put all shows online, but didn’t commit to how many episodes of shows would go online at a time.

And don’t expect Hulu to make a play for the TV anytime soon. Hulu has made it difficult for users to stream its content to the TV using Boxee, a social networking service that allows users to stream Internet video through the AppleTV to the TV. Asked by WSJ’s Kara Swisher why the site has made it difficult, the WSJ reports Zucker said, “right now, we’re committed to Hulu being an online experience, and that’s where our vision is today, and I think that will continue.”

Zucker also said it’s unlikely that Hulu would add another equity partner such as CBS or Time Warner.

Zucker said digital sales remain small for the studio. Asked about his famous comment that studios are replacing analog dollars with digital pennies as they move content online, Zucker said digital revenue is improving.

“What I have said is we are now up to digital dimes. I think that’s progress,” he said. “We still have a 90¢ gap. Hopefully, I can come back and, in a year or two, we will be at digital quarters.”

Zucker said NBC would consider putting its shows on Facebook and other platforms.

“We’ll put our shows anywhere. We want to get paid for it,” he said. “But if we can’t get paid for them, then we can’t afford that cost structure.”