Last updated: March 20, 2010 - 9:34am
Hulu's sales team is "actively subverting" the ad sales of its parent companies that are also trying to sell ads for their shows on Hulu, according to a source at one of the parent companies.
Hulu's ad sales team is "cutting rates," so its ad prices are cheaper. Hulu is also building different, more innovative, ad products than its parent companies like FOX, NBC, and ABC. Basically, Hulu is selling better ads at cheaper rates. It's "hollowing out ad sales" for the networks. The bigger companies are finding it harder to sell Hulu ads at higher rates. This news is significant because Hulu needs the long-term support of its parent companies to survive. If Hulu were to lose its exclusive access to FOX, NBC, and ABC TV shows, the whole operation would fall apart.
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