Hulu cracks the top 10 in Web Video Sites
This really probably isn’t a surprise, but according to the Neilson rankings of web traffic, Hulu is now #10 in traffic among web video sites. They knocked Google Video out of #10 to do this. (Not Youtube… but the other Google Video.) In March they were #30 and April is when they made #10. So, will they succeed?
The first thing that comes to my mind is bandwidth costs which must be considerable. This article has estimated their monthly ad revenue at $250,000 which certainly seems like a good chunk of change, but when you start looking at costs to cover hosting/bandwidth/employee salaries/etc. That quickly starts looking anemic.
I suspect they may have to increase their number of ads to get things done. They do have deep pocket backing though which certainly doesn’t hurt. I just wonder what kind of time frame they have to turn a profit. Even the deepest pockets get tired of digging deep after a while.
Don’t get me wrong I really want to see them succeed. I’ve enjoyed the use of their service. I just wonder what changes they may have to make to succeed. (Pay membership for full access to high quality videos (even with advertising?))