What Happened
Hulu is reportedly planning a new SVOD subscription for both live and on-demand access to content from broadcast and cable channels owned by Disney and 21st Century Fox, such as ABC, Fox, ESPN, and FX, for about $40 a month. The bundle is reportedly set to become available starting early next year.
Why Brands Should Care
With more and more viewers choosing the convenience of OTT streaming services over the rigid live programming grid and expensive cable TV bills, media owners are responding to consumer demand and slowly opening up to streaming platforms. Last year, for example, HBO launched standalone streaming service HBO Now to allow viewers to subscribe without a cable plan. While there is no doubt that TV networks will continue to sell their programming to cable companies as long as the money is good, this announcement nevertheless signals a new path for traditional media owners – it shows their willingness to experiment with the OTT subscription model and see if they can skip the middleman and sell directly to consumers, especially cord-cutters and cord-nevers.
For brands, this ongoing shift in content distribution means that they need to figure out new ways to get their messages across, as most subscription services do not carry traditional ads. For more information on how brands can reach viewers on streaming platforms with branded content and sponsorships, check out the Appified TV section in our Outlook 2016.
Update 5/3: New reports say that NBC has also joined the discussion of taking part in the Hulu bundle.
Source: Re/Code
