Hulu: An Evil Plot to Destroy the World?

Anita  Elberse; Sunil  Gupta

Case | HBS Case Collection | October 2009 (Revised June 2010)

Hulu: An Evil Plot to Destroy the World?

Abstract

In July 2009, Jason Kilar, the chief executive officer of Hulu, is debating whether the online video aggregator should move away from a purely advertising-supported model, and whether it should participate in an industry-wide initiative to develop and test "authentication" technology that can facilitate a subscription or pay-per-view model. The case traces the early years of Hulu, a joint venture between News Corp. and NBC Universal, that was initially met with strong skepticism but quickly became on the most celebrated and popular online video business. Provides in-depth information on how the company serves content owners, users, and advertisers. Describes the online video space in considerable detail, also covering economic and viewership statistics that enable a rich discussion of viable business models.

Keywords: Advertising; Business Model; Television Entertainment; Distribution Channels; Service Operations; Internet; Online Technology; Media and Broadcasting Industry; Motion Pictures and Video Industry;

Format: Print

29 pages

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Citation:

Elberse, Anita, and Sunil Gupta. "Hulu: An Evil Plot to Destroy the World?" Harvard Business School Case 510-005, October 2009. (Revised June 2010.)

Sachin Bansal and Binny Bansal, co-founders of India's largest e-commerce company, Flipkart, were reviewing the foregoing Facebook post, which had gone viral and received more than 20,000 likes. A third-party seller listed a pair of women's sandals on Flipkart's website at 799 Indian rupees (₹) and offered it on promotion at ₹399. However, upon close examination of the product's display photo, consumers noticed a ₹399 price tag printed on the strap. Consistent with stated goals of transparency and building trusted relationships with customers, the Bansals immediately drafted an apology and terminated the seller's agreement with Flipkart.

In 2017, both Flipkart and Amazon claimed leadership position in India's recently concluded key annual festive season sale, but it was too early to declare victory. Amazon continues to invest heavily in India. Competition from newer players is increasing. Media reports hint that Reliance Industries, a large Indian conglomerate, is planning to extend its e-commerce offering beyond fashion to electronics, mobile phones and even groceries. As the battle for India's lucrative e-commerce market gains pace, experts wonder--who will win? Is India a winner-takes-all market or is there space for more than one player?

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Hulu: An Evil Plot to Destroy the World?

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