Yesterday the WSJ ran a lengthy piece on Hulu, focusing mainly on the rancorous relationships among Hulu's owners and the tight position the company has found itself in. One juicy new tidbit was that CEO Jason Kilar threatened to quit over resistance to his proposal that Hulu Plus be priced at $4.99/mo. Though I've long been a fan of Hulu's user experience, the company has been severely pinched from a content perspective. As the WSJ article points out, as Hulu's parents have sold their programs to Netflix and explored doing their own thing, Hulu is getting painted into a corner.
Hulu has also been dogged by its parents' push for retransmission consent payments which are compelling the networks to shift away from making their programs freely available online. Then there's the TV Everywhere issue; as pay-TV operators want to add value to their own services as part of their retrans deals, Hulu is the odd man out. Now Hulu is apparently considering becoming a "virtual cable operator" whatever that means exactly. Bottom line: it's getting harder and harder to see how Hulu can zigzag to ultimate success.