When Hulu launched, it was set up as the perfect online distributor for network TV, which was completely ad-supported. But since then, broadcast networks have fought for and won retransmission fees from cable operators, making their model a lot more like cable. The TV business is only 50% ad supported, with $68 billion coming from advertising. When you tally up TV subscriber fees collected by cable, satellite and telcos, it comes to, well, about $68 billion. And the reality is, between cable, satellite and telecom TV offerings, 90% of Americans pay for their TV.
Hulu is free Internet TV in a sea of subscription. The portal is said to be making very little once all money is divided up among its partners.
