Ad-supported companies exist in a two-sided market.
Users give you attention in exchange for a media product. You resell that attention to advertises for a profit.
Most technically minded folk, for whatever reason, only focus on the first half of the equation, which mostly boils down to product decisions, and when they focus on the second they come up with stuff like micro-targeting or Facebook Beacon.
Hulu isn't making more money than YouTube because the product is less risky, although that is true. They're also most making more money because they have a more lucrative audience, which is also true.
They're making more money because they have experience as a media company and know how to field a killer ad sales team. Don't under estimate soft power. :)
Users give you attention in exchange for a media product. You resell that attention to advertises for a profit.
Most technically minded folk, for whatever reason, only focus on the first half of the equation, which mostly boils down to product decisions, and when they focus on the second they come up with stuff like micro-targeting or Facebook Beacon.
Hulu isn't making more money than YouTube because the product is less risky, although that is true. They're also most making more money because they have a more lucrative audience, which is also true.
They're making more money because they have experience as a media company and know how to field a killer ad sales team. Don't under estimate soft power. :)