Hulu Adds HD -- but is it Necessary?

NBC/News Corp. video site Hulu announced today that it’s adding HD content to the fold. But so far, the site’s HD programming (which piggybacks on Adobe’s new Flash player) consists of movie trailers and brief clips. Although the site is supposed to be ahead of the pack when it comes to broadcasters doing online video, […]

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NBC/News Corp. video site Hulu announced today that it's adding HD content to the fold. But so far, the site's HD programming (which piggybacks on Adobe's new Flash player) consists of movie trailers and brief clips. Although the site is supposed to be ahead of the pack when it comes to broadcasters doing online video, one has to wonder -- is Hulu's HD video ultimately a waste?

Eric Feng, Hulu's CTO, doesn't seem to think so.

"We've kept our streaming video bitrates at modest levels to allow as many people as possible to enjoy our videos," said Feng on the company blog. He added, "But computing power and internet bandwidth continue to increase, and with that comes the promise of widespread High Definition video streaming over the web."

However, there is a difference between Hulu's capabilities and users' demands. During last month's NewTeeVee Live conference, a number of online video executives went on record saying that streaming HD content is largely unnecessary for most consumers.

"We would endorse it if it were quick, fast, and convenient for the user," said CBS Interactive President Quincy Smith. "But it's not about HD quality right now. We're at a point where we need to make the content fly."

Smith's sentiments were echoed by many at the conference, including Jeff Harris, Verizon's Senior Project Manager for FiOS. Harris not only opined that the average customer can't tell the difference between a 480i and 720p image, but also that just because "people are producing in HD, doesn't mean you have to deliver in HD."

With the rabid success of standard definition video sites like YouTube, it's likely that Smith and Harris are right. But as broadcasters grow comfortable with the online format, the key to Hulu's success may ultimately lie in its long term HD game plan. EPICENTER has contacted Hulu for more details on its HD strategy, so expect an update just as soon as we learn more.

UPDATE: Eric Feng got back to us on today's announcement. According to Feng, here's the skinny on what Hulu's cooking up.

On Hulu's HD strategy:

"At the end of the day our strategy is to provide a video quality that a wide audience can enjoy. For us it's always going to be about what works best for our users, so if that means changing the bit rate or offering more display modes then there's a commitment there."

On Hulu's ideal HD user:

"The HD requirements that we have now are pretty high end. But we definitely feel like there is a significant users base out there that is interested in this content and can meet the specifications. As technology progresses, we expect these types of users to grow. So, we've already crafted [the HD] streams to support the most users possible."

On the future of HD content on the site:

"Over time we're going to have more and more content available on Hulu. I think there will be a day when there's a wide selection of different types of premium content available in HD."

On the possibility of 1080i/p content:

"There are a couple of different standards we're thinking of in HD. We like to listen to our users, and a few of them have contacted us about higher definition because they're doing things like watching the content on a projector. But at this point the most important thing is to focus on high quality. We're just going to choose what makes the most sense for our customers."