US online video service Hulu Plus reached 2mn subscribers in the first quarter of this year – around 21 months after it was launched to the public.
The milestone was announced by Hulu CEO Jason Kilar during an Ad Age conference in New York yesterday (Tuesday 6th May), and according to Hulu’s own research represents “the fastest ramp of paid subscribers among any video subscription service in the US”.
The Hulu Plus service costs US$ 7.99 per month, correlating to around US$ 16mn in monthly subscription revenues for the service.
Once advertising dollars are factored in, Mr. Kilar predicts that its subscription services will account for more than half of Hulu’s overall business before the end of the year.
The Hulu boss added that much of the extra revenues will be used to enhance the content lineup with original and exclusive programming.
Hulu was founded in March 2007 by a cabal of content owners including NBCUniversal, News Corporation and The Walt Disney Company as a way of generating advertising revenues from video content which was often finding its way online and into illegal P2P libraries.
Hulu is operated independently by a dedicated management team. NBCUniversal, News Corporation, The Walt Disney Company, Providence Equity Partners and the Hulu team share in the ownership stake of the company.