Delivered October 2, 2019. Contributor: Teresa W.
To obtain insights on Hulu, particulary ad revenue, subscriber revenue, marketing challenges, and cost to advertise on the platform. In addition, to understand the VOD industry including top competitors and business models.
Hulu Ad Revenue
Hulu reported ad revenue of
$1.5 billion in 2018
. This was a 45% increase from 2017.
Ad revenue for 2019 is expected to reach
, a 25% increase.
Ad revenue for 2020 is projected to be
The ad revenue for 2021 is projected to be
Hulu Subscriber Revenue
Hulu does not report
, however, based off of SEC filings of the parent company, Hulu is lost $1.5 billion in 2018.
In terms of subscriber revenue, Hulu has
26.8 million paid subscribers
According to the company,
70% of subscribers
are on the ad-supported plan at $5.99 per month. The
pay $11.99 per month.
Using these figures, we can estimate Hulu's subsciber revenue at roughly $2.5 billion.
Trianguation 1: 26,800,000 x .7=18,760,000 x $5.99=$112,372,400 x 12=$1,348,468,800 from subscribers at $5.99 per month.
Triangulataion 2: 26,800,000 x .3=8,040,000 x $11.99=$96,399,600 x 12-$1,156,795,200 from subscribers at $11.99 per month.
Triangulation 3: $1,348,468,800 + $1,156,795,200=$2,505,264,000.
Hulu is only available in the
, making it hard to compete with other services such as Netflix.
has over 130 million subscribers, it can afford to spend millions on original content, where Hulu only has 28 million.
In addition, competitors such as Netflix run
. Hulu receives a large portion of its revenue through ads. It must balance these ads with user experience.
Hulu Ad Fees
Hulu does not publish its advertising costs, however, according to SQAD’s MediaCosts the average ad on Hulu is
Due to the increase in subscribers, Hulu has reportedly lowered its advertising costs which were closer to
Top VOD Platforms
Since many VOD companies do not release official revenue numbers, top players were chosen by number of subscribers.
has about 137 million subscribers.
has over 100 million subscribers, however, only about 26 million use the VOD service.
Though not officially launched,
is expected to have over 54 million subscribers.
Summary of Findings
Ad revenue generated by Hulu in 2018 was $1.5 billion and is expected to reach $1.82 billio in 2019.
Though not officially reported, Hulu's subscriber revenue can be estimated at around $2.5 billion.
Marketing challenges experienced by Hulu are its smaller addressable market compared to other VODs and its ad-supported platform that may interfere with user experience.
Hulu charges around $25 CPM for advertising. Advertising fees have decreased due to the number of subscribers.
The top VOD platforms by number of subscribers, not including Hulu, are Netflix and Amazon Prime. Disney+ is a platform to watch as it is expected to launch with over 54 million subscribers.
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