Hulu revenue rises sharply

Company to spend $500 million on content this year

Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers.

Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website.

Premium service Hulu Plus “materially exceeded our plan” with more than 1.5 million subscribers currently and growing, he wrote. He said the company is seeing twice the number of subscribers signing up for the service each day compared with the same time last year and expects subscription fees to account for more than half of overall business later this year.

In 2011, Hulu expanded the content available to customers by 40% while Hulu Plus’ offerings jumped 105%. Hulu Plus is the only online video subscription service that offers current-season content from five of the six largest U.S. broadcast networks, Kilar said, with shows from the CW and Univision added this past quarter. Series picked up last year include “Grimm,” “Once Upon a Time,” “Revenge,” “Terra Nova,” “Up All Night,” “New Girl,” “Una Familia Con Suerte,” “The Secret Circle,” “Hart of Dixie,” “Ringer” and “Community.”

Founded in 2007, Hulu recently launched in Japan. It’s owned by News Corp., Walt Disney, Comcast and Providence Equity.

Kilar said Hulu’s growth stems in part from the dual revenue stream with Hulu Plus that lets the company compensate content owners some 50% more in content licensing fees per subscriber compared with “other similarly priced online subscription services.”

More TV

  • THE EXPANSE -- "Intransigence" Episode 309

    'The Expanse' Moves to Amazon for Season 4

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

  • Arrested Development Season 5 review

    TV Review: 'Arrested Development' Season 5 on Netflix

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

  • Showtime Executive, Gary Garfinkle.Photo: Cliff Lipson/CBS©2012

    Gary Garfinkel, Co-Head of Content Acquisitions at Showtime, Dies at 55

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

  • KIM POSSIBLE - The cast of

    'Kim Possible' Disney Channel Movie Casts Its Dr. Drakken, Shego, Other Key Characters

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

  • Ted Danson Remote Controlled Podcast

    Remote Controlled: 'The Good Place' Star Ted Danson on His 'Delicious' Role

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

  • Mick Betancourt Joins Syfy's 'Deadly Class'

    Mick Betancourt Joins Syfy's 'Deadly Class' in Showrunner Switch

    Hulu said Thursday it plans to spend about $500 million on content this year as the service shows strong growth in sales and subscribers. Revenue surged 60% in 2011 to $420 million, outpacing internal predictions and despite an economic downturn in the second half of the year, CEO Jason Kilar announced on the company’s website. […]

More From Our Brands

Access exclusive content