This month, Hulu will begin offering dynamically-inserted advertising within its live television product, which includes sports.
The streaming company announced Wednesday that advertisers will be able to more easily reach younger demographics, many that count themselves as cord cutters, who rely on Hulu’s $39.99 monthly Live TV service to watch live TV shows, news, and sporting events.
The ads, which will be in addition to the typical commercials advertisers already run during breaks in live coverage, will begin showing up across select cable networks within a few weeks, then will expand across Hulu’s Live TV service later this summer.
The news, unveiled at the Interactive Advertising Bureau’s weeklong pitchfest in New York City, was announced during a presentation at Madison Square Garden in which Hulu brought New York Rangers goaltender Henrik Lundqvist on stage. The company touted its expanding portfolio of sports content and partnerships. Hulu is currently in the midst of streaming the NHL playoffs as an official sponsor of the Stanley Cup Playoffs and Final.
The company also revealed Wednesday that it now has 20 million subscribers across both its on-demand and live TV services. That is up from the 17 million the company reported in January. Hulu revealed plans for an ad-supported service that will allow users to download content for offline viewing.
SportTechie Takeaway
Hulu says the new dynamic ads in its live TV product will enable advertisers to target specific households and insert ads on short notice. Hulu expects live TV to continue its shift from traditional cable broadcasts to over-the-top services, and believes ads are an inevitable part of that transition.
Streaming services, such as Netflix and Amazon Prime, initially attracted users with lower prices and ad-free, on-demand experiences. The shift to live TV, however, seems to require a more familiar advertising structure to that of traditional TV.
Hulu isn’t alone in this thinking. Earlier this week, YouTube also announced that it would begin selling ads in its TV service and similarly touted the ability to target specific households and cord cutters.
Hulu, which is jointly owned by The Walt Disney Company, 21st Century Fox, Comcast and Time Warner, began streaming sports live across a number of broadcast TV channels last year. Hulu says sports have fueled the growth of its live TV service, which has prompted it to expand its sports coverage.
Over the past year, through Live TV, Hulu subscribers have been able to access live games from major pro and college leagues, including NCAA football and basketball—Hulu streamed the March Madness tournament. They’ve also been able to catch Premiere League soccer games, as well as NFL, MLB, NHL, and NBA games (including the NBA Playoffs) broadcast by ABC, TNT, CBS, FOX, NBC, ESPN and CBS Sports.