Hulu Chief Sees Online Media Mostly Supported By Ads

NEW YORK (Dow Jones)--Hulu LLC Chief Executive Jason Kilar said Wednesday that he believes most premium media content in the world will be available online five or 10 years from now in a free, bw classic ad-supported ubiquitous model. The comments, made in an interview with Dow Jones Newswires, came one day after Hulu launched its long-awaited online subscription offering--Hulu Plus--a service that costs $9.99 a month and allows customers to watch a broader array of TV shows on computers, air classic televisions and mobile devices, like Apple Inc.'s (AAPL) iPad and iPhone.  Already, Kilar said subscription requests for Hulu Plus have "vastly exceeded" internal expectations. air classic bw He noted the free Hulu Plus iPhone application, which allows users to test a limited sample of programming on their device before they subscribe, was the No. 1 download on Apple's App Store over the last 12-hour period. Hulu, nike bw the No. 2 online destination for video content behind YouTube, launched its subscription offering as a conviction grows in the traditional media business that creators of news and entertainment content can't rely on advertising revenue alone to support a thriving business online.  Kilar said that some content will fare well under a subscription model, air bw and he pointed to the success of Time Warner Inc.'s (TWX) premium cable network HBO as an example, but he's convinced that most media content in the future will not exist behind a pay wall. As for Hulu itself, Kilar said both its ad-supported and subscription businesses will be "significant," air shoes but he's not sure which one will end up providing the site's largest source of revenue.  "Ultimately, it's the consumer that's going to decide, tn chaussures  and we're very comfortable with that," Kilar said. Hulu is nearing the end of its third consecutive quarter of profitability, chaussures nike tn and it's on track to exceed the $100 million in revenue it posted last year. Kilar said Hulu Plus will be accretive to the site's profitability.  Hulu is a joint venture between General Electric Co.'s (GE) NBC Universal, nike shox rivalry The Walt Disney Co. (DIS) and News Corp. (NWS, NWSA), which owns this newswire and The Wall Street Journal. Comcast Corp. (CMCSA), the nation's largest cable operator, has a deal with GE to take a majority stake in NBCU that is currently held up in the regulatory approval process in Washington, shox nike D.C. Critics have noted that Comcast, as a major media distributor, has some conflicting interests with the site's current owners, which are media creators, and Comcast may stifle the venture to protect its own TV subscription business. YWJ
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