Hulu has revolutionized the way we watch television. No longer do we have to sit down at the time a show is playing to watch or suffer through long commercial breaks at critical times in the plot of the program. Hulu allows anyone to watch their favorite programs online, anytime, for free.
They are able to do this legally by purchasing rights to the show from the network it runs on. They pay for these rights by having a few commercials. Commercials on Hulu will run about 3 times, for 2 minutes each time, during an hour long program. (Which is really only 40 minutes, once the commercials are taken out.)
While there are so many less commercials, Hulu is able to make a profit because of the number of people who will watch a show now that they can do it anytime and from any location with an internet connection. They also make money from their Hulu Plus subscriptions, which allow the user to watch a greater variety of shows, more seasons of popular shows, and everything commercial free.
Using the combined revenue streams, Hulu was thought to have made $250 million in 2010 according to Business Insider.
Watch your favorite show at hulu.com
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