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21st Century Fox CEO James Murdoch: Half of Hulu subscribers pay for the ad-free version



Hulu currently has three major owners, including 21st Century Fox, and, according to the company, about half of Hulu's 20 million subscribers pay for the ad-free version.

"There is an option for the limited-ad experience, and it's about Evens, I think," Fox CEO James Murdoch stated on the Code Conference in Rancho Palos Verdes, California , The ad-free service costs $ 11.99 per month. ( Update: Insiders say a younger number for the share of subscribers paying for the cheaper ad, the ad version is over 60 percent.)

Murdoch responded to a question about the rapid rise of online Video Competitor, Notably Netflix, Which Now Has Over 1

25 Million Subscribers

"Looking at the kind of investments Netflix has to make, there are huge costs and huge barriers," he said. "I think they did a great job and raised the bar for the competition."

The lack of ads plays a role in the attractiveness of Netflix, which also explains the high proportion of Hulu subscribers who pay 50 percent more for shows without advertising, Murdoch said. (While it's being marketed as if it has no ads, some advertisements still appear for certain shows due to contractual agreements.)

Netflix's strong advances and the increasing dominance of online networks like Facebook have been eaten in traditional TV companies and shakes the media landscape. This has led to some big mergers, including Disney's $ 52 billion deal to buy Fox's most business.

But, to be clear, that's not why these companies are merging, according to Murdoch.

"We are competing really well," he said, citing the company's nearly $ 1 billion in rights to India's cricket league and successfully fending off interest rates from potential Internet rivals Facebook and Google.

"It's not about not being able to compete," he said. "The reason for the combination is that we believe that the emerging company is a very attractive business … and the combination will be much more competitive in the future."

Nevertheless, it is clear that Internet giants have displaced the traditional media players with consumers who develop direct relationships through advertising services.

James' father, Fox executive chairman Rupert Murdoch, has prevailed on Facebook and Google to consider the cable model as a way to reinforce good content on the service. Poor actors have learned to use digital networks for political purposes use. Facebook and Google could pay content providers like Fox a monthly fee to run their shows.

The younger Murdoch does not believe that will happen.

"I would doubt it," he said. "We're working closely with Google and Facebook, more or less successful, depending on the days of the week, but YouTube Live TV has been great."

YouTube TV is Google's over-the-top service, offering a small bundle of live TV Channels are replicated for a monthly fee and includes Fox networks like FX.

Whether Facebook could offer an ad-free version one day, Murdoch was not optimistic.

"The question should rather be whether the advertising model in the network controls the right behaviors," he said, adding that social networks like Facebook are more of a "target" for foreigners.

"You can buy the accounts of people from these farms," ​​he said. "It was not great."


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