Project Moab at Hulu

In 2015, Elaine Paul, CFO of Hulu, and the rest of the senior leadership team, must decide if they should offer a new, advertisement-free subscription service. At the time Hulu distributed a wide variety of content including in season current programing and earned significant revenues from advertising. This choice had strategic implications and required formulating a view on how the video-on-demand industry would evolve. It also had value implications that can be analyzed in a subscriber-valuation model. The owners of Hulu, which included Disney and Fox, would ultimately need to approve whatever decision was made.