Hulu killed cable…

…at least in my house it has. I recently gave up my cable watching days for a newer approach to watching my favorite shows. The customer service reps at Cox Cable (my local provider) had a somewhat horrified look of disgust plastered all over their faces when I informed them that I would no longer need their cable services. Not only am I saving $50 a month for going the free route with Hulu- I’m also saving myself hours of watching commercials. Cable companies will continue to see a decline in subscriptions as more and more people find online TV network consumption continuing to increase, especially as mobile technology advances video watching capabilities.

With most U.S. homes connected to broadband, the viewing of online video has never been easier.  Whether watching a short clip on YouTube or an entire TV program, almost three-quarters (72%) of Internet users view videos online — amounting to 144 million people.  To marketers, this presents a huge – and largely untapped – audience to reach.  And while online advertising fell overall in 2009, ad spend on online videos grew 41%.

-Nielsen Wire

I’ve noticed a particular exciting technique to advertising on Hulu- whether or not it is intentional- that works best to captivate my attention as a consumer. It ingenious and yet so simple: The 15-30 seconds commercial spots. Yes, one commercial that lasts such a short time that I can’t flip to another screen or get up to get a snack. I’ve been so programmed over the last twenty or so years of watching television to avoid commercials by flipping the channel or distracting myself for the 2-5 minute calculated breaks in a program that the ads go unwatched. And now with DVR and TiVo capabilities and online Hulu-like services popping up with increased frequency, advertisers are met with new challenges. The short commercial breaks on Hulu are so short that avoiding them is nearly impossible. And the fact that I can “like” or “dislike” gives me that instant satisfaction of expressing my frustration or surprise to an ad- also giving advertisers a way in which to measure and adapt to consumer likes and dislikes.

The patterns they uncovered were consistent:  video ads run during online full-episode TV programs yield deeper brand impact than corresponding on-air TV ads, with the difference most pronounced among younger viewers age 13-34.

Am I worried about the rumors that Hulu will one day charge their viewers a fee to use the service? Maybe, but for now I’m loving the freedom it gives me to catch up on my favorite programs all at once on my time, to express my likes/dislikes for ads, and to share episodes with my friends through social media. Hulu- you are truly awesome.

Pros:

1. Free
2. Choice of short commercial breaks or one long commercial and an uninterrupted program
3. The chance to “like” or “dislike” an advertisement
4. To watch your favorite programs on your time
5. To watch the most recent episodes of your favorite shows
6. Ability to share content on social media sites
7. Variety of recent popular programs and past popular programs
8. On-demand movies for free

Cons:

1. Rumor that Hulu might starting charging $4.99/month
2. New episodes not always updated as frequently as air date
3. For beginners: Finding your favorite shows can be frustrating

Would you pay per month for access to your favorite past TV episodes online? Let me know your thoughts in the comments.