A firm needs to define itself not by the product it sells, but by the customer benefit provided.
From the get-go, Hulu remained freakishly focused on its three customer sets – content owners, users, advertisers. It developed a comprehensive and expansive platform to distribute content. It created innovation laboratories to constantly tweak the usability of the site, while placing a premium on responding to user feedback. It discovered new forms of niche advertising for its advertisers.
Hulu’s advertising strategy centered around its ability to allow advertisers to target users belonging to a host of different segments – geography, demographic, interest, behavior, taste, etc.
Hulu has had to consistently wade through a minefield of logistical, legal and distribution challenges with their partner content providers. Some content providers have chosen not to partner with Hulu. Others have had their doubts and been hesitant to license their content. Etc. There’s also the simple fact that Hulu now receives video content from so many sources – it must be a serious ball of yarn to untangle.