Traditional media is thought to become quickly irrelevant as we progress in Internet-based technology. The print media companies have almost all gone to the government begging for a bail out, while continuing to fold, irregardless of the financial support.
Television broadcast companies, however, are making more smooth of a transition into the age of the Web. Hulu, the popular online video service, is a prime example of this transition. The website is a collaboration between three of the largest TV stations, including Fox, ABC, and NBC.
Utilizing the power of online advertising on both Hulu and their own websites, each television broadcast corporation is able to provide many clips and full-length shows for free viewing. The commercials are mostly non-invasive and usually only take up about 15 seconds of time in between segments of the show being viewed. Arguably, this type of advertising, versus advertising on the television screen, may be more sensible, as it is easier to click directly to the product, versus going to the store and trying to find what was advertised.
So, while the print media continues to collapse from lack of smart reorganization, the broadcast media sector grows., Fox Entertainment Group, and ABC Inc each own a 27% stake in Hulu, with an investment firm holding the remaining 19% of the website.
Hulu revenues are projected to surpass those of Youtube for the year of 2009. Does this go back to the old adage that better content wins? Or are these three media giants simply playing the game smart?