HOLLYWOOD -- In a bold assertion, NATPE's CEO Rick Feldman told Beet.TV that he expects Hulu to fail within three years.
"Some organizations think putting your content for free on the Web is a good idea. I think it's a bad idea," he told us in this video interview at
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the NATPE LA TV Fest.
NATPE is short for National Association of Television Program Executives. "Three years from now Hulu will be history. If you have something no one is willing to pay for, you don't have anything."
However, Hulu has been attracting marquee brand advertisers, running top-tier content and generating revenue, as have network Web sites that carry free (ad-supported) programs, such as ABC.com.
Still, Feldman insists there isn't enough advertising revenue to go around and he expects subscription models to rise up in importance. "Advertisers say they like niche programming, but what's niche? Is niche 5 million or 3,000? The truth of the matter is there is not enough advertising to support all the content creation...there will be some sort of brands where people are willing to pay some sort of subscription fee."
Business models that make sense are those with dual revenue streams like cable or even broadcast, if broadcasters can win retransmission consent, he said.
NATPE is a trade association that runs marketplaces for the buying and selling of content in the United States, Europe and Africa. NATPE also hosts conferences.
Daisy Whitney, Senior Producer
Disclosure: NATPE is producing partner for Daisy Whitney's New Media Minute.
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