Popular Online video site Hulu should more than double revenue this year to $240 million, up from $108 million the year before and $25 million in its first year, its chief executive Jason Kilar said. Launched three years ago, Hulu is now the second-largest Web video service behind Google’s YouTube in the United States. All of the top 25 U.S. advertisers now run spots on Hulu’s site, Kilar said.
Today Hulu is estimated to be worth $2 billion. The announcement Wednesday comes about five months after Hulu launched a $10-per-month subscription plan called Hulu Plus, which allows consumers to watch entire back seasons of shows from NBC, Fox and ABC such as “30 Rock,” “Glee,” and “Modern Family.”
However, CEO Jason Kilar, a former Amazon.com executive, seemed most interested in underscoring the power of Hulu’s key revenue stream: advertising. Hulu expects to continue to generate most of its revenue through commercials even though it is launching a subscription service.
Kilar noted that 352 advertisers pitched their products and services on Hulu during the last three months –- delivering 800 million streams in October alone. He also cited industry research that users had a higher recall of the ads they watched on Hulu than on traditional television.
Hulu is jointly owned by General Electric Co.’s NBC Universal, Fox owner News Corp., ABC owner The Walt Disney Co. and Providence Equity Partners.