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  • Guillerma

    Hulu has higher avtsrdieing rates because well established networks and TV shows are available on the Hulu site for free to viewers (to a point). Therefore, Hulu is able to receive higher revenue through avtsrdieing because customers are expecting to see commercials. Viewers value time and watching 5 minutes of commercials on TV is longer than watching 1 minute of commercials on Hulu. Therefore if the customer would be expecting commercials through the regular channel, then watching 4 minutes less commercials on Hulu actually seems like a good deal. For YouTube, however, customers do not expect commercials because the content is generally much shorter and somewhat amateur (unless it is an official music video or other type of video of the sort), so customers are not happy with commercials that are even fairly short in length. If YouTube wants to enter into this market with more avtsrdieing revenue, it will have to come up with a new way to increase the value of what the customers are watching. Perhaps, to compete with Hulu, YouTube could develop a relationship with companies to stream movies (with commercials) to customers so that there is more value (and Hulu does not currently do this I don’t think, so it would be an advantage).