Last week, there was a story that major music labels, fed up with the paltry advertising revenues generated from their partnership with YouTube, were looking to band together to form a Hulu-eque site for music videos. Well, this week it looks as if they might just join up with Hulu altogether.
Now the Financial Times is reporting that partnering with Hulu itself is not only an possibility, but it’s a very likely option:
Representatives of two music companies, who would not be named, said they were in discussions with Hulu, adding that no partnership announcement was imminent but that the site appeared to be the favored partner. “If it happens at all it will be with Hulu,” one said.
This would be a major blow to YouTube, which, despite having massive traffic numbers, makes around the same amount of money in advertising as the much smaller Hulu. Hulu’s approach to focus on high-production value content has paid off, earning them more per view than YouTube. The music companies heading to Hulu shows that the content owners value the quality and the control that Hulu’s model offers over the user-generated approach that YouTube was taking.
Hulu’s content is not readily available on most mobile devices, unlike YouTube, which has almost native support in the iPhone operating system.