NBC on Why Hulu.com IS a YouTube Killer: OMMA Report
Who says Hulu.com doesn’t have a (good) shot at weakening Google’s YouTube online video dominance? A confident George Kliavkoff, NBC Universal’s Chief Digitlal Officer, laid out a welll thought out Hulu.com business model strategy this morning at the OMMA Conference in New York City to conclude that “quality” will always wins out.
The three core foundational principles of the NBC Universal-Nes Corp. Hulu.com Joint Venture, acccording to Kliavkoff:
1) Premium, professionally produced video content will be the ultimate winner online,
2) There is huge value in aggregating content,
3) NBC believes in ubiquitous distribution.
The three-prong philosophy will be implemented using multiple networks, multiple providers and a new best video practices destination site launching next month: Hulu.com.
Hulu.com aggregated content from participating video partners will be available at Hulu.com and at consumer portals, such as Yahoo and MSN, representing an effective 98% reach. Viewers at the destination Hulu.com, however, will enjoy “additional benefits” such as a higher quality video experience and personal video tools, Kliavkoff said.
Distribution partners are obligated to promote Hulu.com content at their sites with guaranteed page view commitments. A proprietary recommendation engine will help drive increased usage and site loyalty.
Distibution partners are also obligated to use “affirmative IP filtering,” guaranteeing ”legitimate” and monetizable quality viewing experiences.
NBC believes in the long-term appeal of episodic broadcast quality video, over YouTube’s clip-culture low-brow fare. Kliavkof underscored that snack-sized short-form ”entertainment” has dominated online video to date because “nothing else was available untill a year ago,” noting that 83% of “people who start to watch a full length show, finish it” along with the advertising.
While Kliavkoff predicts a winning business strategy for Hulu.com, the ultimate winning video ad formats are yet to be determined. NBC is open to trying and testing all types of creatives and strategies. Kliavcoff made an open call to advertisers and marketers in the OMMA audience to collaborate on innovative ad delivery, offering to “set aside” ad inventory for experimentation.
Bottom line? Call Hulu.com “ClownCo” if you like, but Kliavkoff and company are on a serious mission to unseat YouTube at the head online video table, and the Hulu.com charge will undoubtedly have legs.
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