Disney CEO: Hulu Could Charge for Content

Written by Ryan Lawler

Thursday, July 23. 2009 at 01:10 PM EDT 3 comments

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According to reports from Fortune magazine's Brainstorm: Tech conference yesterday, Walt Disney Co. (NYSE: DIS) CEO Robert Iger could push for online video portal Hulu LLC to begin charging for its content.

According to The Hollywood Reporter, Iger told audiences that Disney was already working on a way to begin charging for its online content on a subscription basis.

"The notion of going online at some point as a subscribe-to, robust entertainment experience is pretty attractive to us," Iger said. "We are developing such an experience."

While acknowledging that Disney makes far less online than it makes through traditional channels, Iger said that content providers in general could do a better job of getting consumers to pay for content.

Iger noted that consumers spend $5 an hour at theaters to see movies, 75 cents an hour to read books, newspapers, and magazines, and 50 cents an hour to watch cable and satellite TV, but they spent only 25 cents an hour to surf the Internet, according to CNET.

"There's plenty of room for people to spend more money for things they are doing online," Iger said. "I think it is wrong to assume that because there is a lot on the Internet that is free that it is going to be impossible to monetize" content.

While it seems most of the discussion centered around how Disney might monetize its own content, the desire to add a paid subscription model may also extend to its joint venture Hulu.

Earlier this year, Disney struck a deal to take an equity stake in Hulu and bring programming from ABC and Disney Channel to the online video site. In addition to Disney, NBC Universal, News Corp. (NYSE: NWS), and Providence Equity Partners own a stake in the online video site.

According to Kara Swisher at AllThingsD, Iger said Disney believes in Hulu, but thinks the site's business model, which is now just collecting online advertising, might evolve over time.

"We have ample evidence both in traditional media and in new media that people are willing to pay for quality, they're willing to pay for choice, they're willing to pay for convenience," Iger said, according to an Associated Press report. "It's possible that Hulu will look at monetizing as well. It may be not just selling ads."